According to MetaCartel Ventures DAO partner Adam Cochran, the launch of Ethereum 2.0 can lead to a “major economic shift” in society and the growth of the ETH rate.
Cochran noted that the launch of staking in Ethereum 2.0 may lead to a lack of ETH in the market. If the annual reward for staking ether is 3-5%, it can attract capital from large investors and up to a third of the total number of coins will be blocked for staking.
In addition, the ETH burning mechanism that is planned to be introduced will further reduce the supply of coins on the market. Accordingly, the rate of the second cryptocurrency will grow.
The growth of the ETH rate should also contribute to the fact that it is now much easier for retail investors-beginners to use Fiat currencies to buy cryptocurrencies.
“Now you can quickly buy cryptocurrency, so people with the FOMO effect can pour a huge amount of money into the system. All you need is for some news about the growth of cryptocurrencies to make them remember their account on Coinbase,” said Cochran.
Alex Batlin, CEO of the Trustology custodial platform, believes that the launch of Ethereum 2.0 will entail much more extensive consequences than just an increase in the exchange rate. Thus, Ethereum 2.0 should offer the scalability necessary to increase the acceptance of cryptocurrencies.
“In order for DeFi to really start working, we need to increase the speed from 20 transactions per minute to a thousand or two thousand. And then Ethereum 2.0 comes to us. If you look at the specs, they are just great.”
Recently, Butlin also said that with effective scaling, DeFi can become the most liquid financing option.
Recall that, as previously reported, the daily volume of assets transferred in the Ethereum blockchain “caught up” with a similar indicator of Bitcoin.