Changing network from Proof Of Work to Proof Of Stake will effect to ethereum completely. Not only the network and the supply but also non technical aspects like pricing. Ethereum 2.0 will be proof of stake coin. There are three phases that the network should pass to be successful.
Phase 0 was in December 2020, Phase 1 will be in 2021, and Phase 2 will be in 2021/2022. Phase 0 was by releasing beacon chain. Since ethereum 2.0 is a proof of stake coin, there must be stakers that stake their eth to the smart contract. The requirement to launch the proof of stake , the network needs at least 524,288 ETH were required to launch ETH 2.0 proof-of-stake (PoS) beacon chain.
Eth staking surpasses 2,3 million eth
Current report from deposit smart contract , the staked eth has reached more than 2.3 eth locked.
T otal staked eth is more than 2,3 million. The value is about 3,09 billion USD at the current price 1,300 USD. The price of ethereum is bullish from $500 few months ago to $1,300. Staking eth to smart contract influence the demand of eth in the market so the price increases too. Minimum staking is 32 ETH. Current staked has passed the minimum requirement of 524,288 ETH to launch the beacon chain.
ETHEREUM PRICE ANALYSIS
The law supply and demand works on eth recently. Supply eth in the market decreases because more people participate in staking ethereum. Other reasons that ethereum holders seems to keep their asset and wait for the eth bull run.
Ethereum Locked in Defi projects
Ethereum staking on Ethereum 2.0 contract address is a reason for ethereum price bullish. Other reason is Eth locked in defi projects. There are tens to hundreds of defi projects that use Eth as the liquid asset or collateral asset. Uniswap use eth as one of the liquid asset to ethereum defi tokens. Most defi projects are ethereum based network so the need of Eth increase for liquid asset in defi.
The end of 2020 was the party of defis. In the early 2021, the party continues. Most new crypto projects include defi beside the main project. Developers see that defi increase the interest of investors because they will not only get rebase from the rise of the native token projects but also earn reward from providing eth as liquidity asset.
Total Eth locked in defi decrease from December 2020. Currently the eth locked in defi protocols reached 6.6 Million. Eth locked in defi plus in Ethereum 2.0 smart contract 6.6 plus 2.35 equals to 8.95 million. Eth locked in coming months will increase since more defi projects and more staking in Ethereum 2.0 smart contract. Though, the trend of Eth locked in defi protocols decreases, in the near future, eth locked in defi will climb up.
It is very possible that Eth will surge to $2000. The current price resembles to the price in 2018. The sharp different is in the trading volume. In 2021, trading volume is about $ 38 M while in 2018 $5.2 M. Is the current price the peak of Eth price in 2021. The author opinion is that the current price will be higher than the price in 2018. Defi projects and Ethereum 2.0 staking will make Eth as the value asset that more people want to own.
Will Eth surpases $2000? It is very possible since the Phase 1 of Ethereum 2.0 has not been launched. The success of Ethereum 2.0 phase from 0 to 2 will boost the Eth price.
The peak price of the year 2018 and 2021 is nearly the same. The writer opinion here is that the ethereum price will be corrected for a while but soon will increase above $1500.
