Much has been said about the upgrade of the Ethereum 2.0 protocol , which aims to change the consensus mechanism into proof of participation [PoS]. Despite several delays, the Ethereum co-founder recently said that the release of 2.0 for July is still underway. Assuming the launch will go as planned, analyst and noted investor Alex Saunders has plotted his calculations for Ethereum's stock-to-flow .

According to Saunders, Ethereum's S2F in 2019 was close to 21.95, which, when compared, was close to a precious metal like silver at 22, was not negligible. However, as the graph progresses in 2020, the   ETH   could just cross money in terms of scarcity, with Sauders predicting that the S2F of the old will reach 28.25 (white) by the end of the year.

Source: Twitter

With the planned launch of Ethereum 2.0, Saunders has calculated that the S2F will jump 100% by 2021 (black). However, as these are based on the implementation of the protocol upgrade which has been postponed several times before, the community will have to wait for the final launch of ETH 2.0 which will replace mining for staking.

Expecting everyone to play with the change in protocol, Saunders expects the stock-to-flow to reach 57.2 in 2021 and will only approach 58.5 in 2022. The current gold stock-to-flow is around 60, and this push could make Ethereum an even more valuable asset.

Source: Twitter

As the second largest cryptocurrency becomes scarce, its inflation rates should drop. Saunders said:

"Inflation will decrease with proof of participation and the burning of costs (EIP1559). ETH's monetary policy is changing. $ ETH becomes better money. "

With the introduction of proof of participation, the inflation rate should drop by 2%. This drop will be close to Bitcoin's fourth-era inflation rate  , estimated at around 1.8%. Ethereum's inflation rate could drop more than even that of gold, as its annual inflation is around 2.5%.