When the first phase of Ethereum 2.0 will launch within the next few months, some analysts and experts believe that this event could trigger a massive price increase and financial change as we know it.
Adam Cochran - a partner of MetaCartel Ventures DAO and a strategic developer at DuckDuckGo, made some arguments to explain why ETH 2.0 can prove to be the biggest economic change in society. , according to a blog post.
Although that may be impracticable, he suggests that staking could shock the supply of Ether. Cochran believes that a reliable 3-5% staking reward will attract capital from major investors until about 30% of the total supply is locked. The upcoming burn mechanism of ETH will contribute to reducing the supply in the market.
Fiat on-ramp will easily amplify retail FOMO
Cochran hypothesized that this supply shock would create FOMO for retail investors who were not interested in technical analysis and "just wanted to participate."
Unlike the 2017 price rally - the time when fiat currency was brought into an exchange was a headache, FOMO could be expanded, as new users can now easily buy cryptocurrencies with Fiat on exchanges like Binance:
“There is no stopping distance during this period, which means all of these users can FOMO at once. It's all just a crazy MSNBC headline about Ethereum's growth to remind them of their Coinbase accounts, and retail investors create a chaos. ”
Leaving prices aside, ETH 2.0 can transform financially
Chatting CoinTelegraph, Alex Batlin - founder and CEO of cryptocurrency depository platform Trustology, argues that the impact of ETH 2.0 will far exceed price volatility.
Batlin believes that ETH 2.0 will provide the scalability needed to support the mainstream adoption of decentralized financial protocols.“For DeFi to really work, we need to get 20 to 1,000 or a few thousand transactions per minute, and then we start really serious. And ETH 2.0 is coming there. If you look at the specs, it's quite interesting. ”
If ETH 2.0 continues its current trajectory, Batlin believes that DeFi can scale to eventually become the
"predominant mechanism that we make financially."
Whales seem to be accumulating
The whales also seem to agree with the view that ETH 2.0 can be a major growth catalyst, with trading volumes rising to a record over many times over the past 12 months. The ETH price is currently up 25% from 30 days ago, although still below the yearly high of about $ 100.
Although the first phase of ETH 2.0 is expected to be implemented this year, Ethereum co-founder Vitalik Buterin has launched a multi-year plan for a full implementation. Therefore, a large rally and global financial transformation may still take some time.
