Opinion: the launch of staking in Ethereum 2.0 will give birth to a bull market
Representatives of the cryptocurrency community are convinced of the growth of the market and the upcoming transformation of the decentralized finance space after the transition of Ethereum to stage 2.0 with the possibility of staking. Cointelegraph leads to expert opinions.
According to Adam Cochran, partner at MetaCartel Ventures DAO and strategy developer DuckDuckGo, ETH 2.0 will be “the community’s largest economic shift.”
In his blog, he predicts an influx of capital from large investors until 30% of all broadcasts are blocked in staking. This will be possible with a guaranteed interest rate in staking of 3–5%. The ETH combustion mechanism will eliminate the shock of supply that is possible at the initial stage.
Cochran believes that this shock will create the effect of FOMO, the “lost profit syndrome” among retail investors. Compared to 2017, its degree will be higher due to the simplification of the purchase of cryptocurrencies by fiat on popular bitcoin exchanges.
“There’s just one flashy headline about Ethereum’s growth on the channel and investors will remember their account on the cryptocurrency exchange and rush to make a flurry of purchases”, Cochran sees the future with the launch of ETH 2.0.
Alex Batlin, founder and CEO of the custodial Trustology platform, saw Ethereum’s upcoming transition to Stage 2.0 with the increased scalability needed to support the widespread adoption of decentralized finance (DeFi) protocols.
“It is breathtaking in anticipation of the moment when the ETH network will be capable of a thousand or two transactions per second. Then DeFi will really work”, says Batlin.
He is convinced that with such capabilities, DeFi will eventually be able to supplant traditional finance.
According to a roadmap recently proposed by Ethereum founder Vitalik Buterin, network transformation will take the next 5–10 years. However, many participants in the cryptocurrency market have probably already begun to prepare for such changes. This is evidenced by the increase in the price of ether by 25% over the past 30 days with increased trading volumes.
Recall that the test version of Ethereum 2.0 Topaz launched on April 18 attracted almost 20 thousand validators in a short time.