Is Ethereum 2.0 Ready For the Bull Run?By Apr 24, 2020 3 Min Read
The initial stage of Ethereum 2.0 is set to start in a few months, with many experts arguing that it may be the catalyst for a huge industry bull run. Adam Cochran, a partner at MetaCartel Ventures DAO, released a blog which outlined why he believes Ethereum 2.0 “could prove to be the largest economic shift in society.” So, is Ethereum 2.0 ready for the bull run?
This is my approximate view of what the next ~5-10 years of eth2 and beyond might look like.— vitalik.eth (@VitalikButerin) March 18, 2020
Roadmap below reflects my own views, others (including future versions of me) may have different perspectives! Details may of course change as we discover new info or new tech. pic.twitter.com/wynMVC04Ag
Ethereum 2.0 bull run could transform the industry
While his initial statement might seem slightly farfetched, Cochran goes on to outline his other predictions. He argues that moving Ethereum into staking could trigger an ETH supply shock. Cochran noted that dependable staking rewards between 3% to 5% could bring in capital from major investors, locking up roughly 30% of ETH’s total supply. Then, an impending burn mechanism will reportedly contribute to the falling supply of ETH available.
Cochran believes that this supply shock will trigger FOMO (fear of missing out) in retail traders, who will try to get into the market as quickly as possible. It’ll be even easier than the December 2017 bull run, because buying crypto with fiat is more accessible than ever (thanks to exchanges and trading platforms like eToro).
Cochran noted that with no stop-gap, users will be able to “FOMO” concurrently. Really all that is needed to drive a buying frenzy is a single headline about ETH growth, and retail traders will cause a stir.
Nevermind price growth, Ethereum 2.0 will alter the finance industry forever
Alex Batlin, founder and CEO of Trustology, highlighted that Etheruem 2.0 will have ripple effects that go beyond simple price growth. Batlin highlighted Ethereum 2.0’s improved scalability, which could be used to support adoption of DeFi by the general population.
“For DeFi to really work, we need to get from twenty to one thousand to maybe a couple of thousand transactions per minute, and then we start to get really serious. And ETH 2.0 is getting there. If you look at the specs, it's pretty exciting.”
Should Ethereum 2.0 maintain its current path, Batlin argued that decentralized finance could eventually be the main protocol that finance functions on.
Whales are accumulating Ether
So, is Ethereum 2.0 ready for the bull run? Whales seem to think so. Trade volumes have risen to record highs on a number of dates over the last year. The price is up at the moment, but still remains below its year-to-date high.
Ethereum 2.0 will launch this year, and could trigger a bull run
So, realistically, is Ethereum 2.0 ready for a bull run? According to two experts, Ethereum 2.0 is ready for some major bull action and could change the industry forever. However, Vitalik Buterin has laid out a multi-year roadmap for the protocol's complete deployment, so these changes could take a fair amount of time to actually see.