Analyst – ETH 2.0 Will Drive the Largest Economic Shift in Crypto Space
Ethereum’s ETH 2.0 is considered to be highly important for the Ethereum network and its launch is only a few months away. It is believed to be a driving factor for the Ethereum network’s future. However, a crypto analyst named Adam Cochran who is the Professor of Information Science at Conestoga College believes that Ethereum’s ETH2.0 could also create the largest economic shift in the crypto space.
Adam Cochran has also been the former marketing executive at Dogecoin. He has given the best-case scenario that can happen once the Ethereum networks complete its shift from the proof of work (POW) consensus algorithm to the proof of stake (POS) consensus algorithm. He has highlighted some of the key things and says that Phase 0 of ETH 2.0 will initiate the next big economic shift in the crypto society.
3 – 5% return on staking will catch large investors’ attention
The former marketing executive at Dogecoin says that large investors keep a close eye on stable 3 – 5% staking returns. He believes that yearly return from 3 to 5% on staking will attract the attention of large institutional investors.
This means that it is crucial to lock up between 10M and 30M ETH (which is approximately 10 – 30 % of Ethereum’s whole circulating supply) into the validators of ETH 2.0 in order to get the staking rewards down to this level.
Supply shock will give rise to the price spike
Moving on ahead, Cochran illustrated that if such a large amount of ETH supply suddenly gets locked up or removed then a supply shock is likely to arise which will ultimately give rise to a price spike. He says that if the price spike is created then the large investors will surely buy more and more ETH coins. So, the FOMO among retail investors will be at its peak level.
Cochran then says that when whales will see ETH price going up they will buy more coins in order to pour their money into staking. He says, “This, in turn, creates scarcity, increasing the price, which in turn results in more whales buying to stake”
ETH 2.0 has a very difficult journey ahead but people’s believe in it is not lowering and they believe that it will cause the upcoming huge economic shift in the crypto space.
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