Ethereum 2.0 phase 0 will multiply the supply rate of ETH, directly affecting the Ethereum price
One of the most popular cryptocurrency trends in recent months is Ethereum DeFi. And this is also one of the reasons why Ethereum price is quite strong bullish. Still, it did not bring a good price move for ETH.
ETH/USD 4-hour chart | Source: TradingView
The currencies associated with this DeFi have far exceeded the Ethereum price
According to Marc Zeller, CEO of a top DeFi protocol Aave, DeFi is likely to be further enhanced after Ethereum 2.0 goes live.
Zeller said, if anything, ETH2 phase 0 will increase the supply ratio of ETH. Explaining the reason, Zeller said many people would be hesitant to deposit their money into Ethereum 2.0. However, there will still be some who seek to invest their cryptocurrencies, pushing higher rates on the DeFi platform as borrowing activity increases.
“Markets love equilibrium so you will end up with a small discount between ETH supply rate on Aave and the staking yield on ETH2. So my take is that ETH2 will grow DeFi instead of being a threat.”
My hot take on ETH2 and the #Defi ecosystem.
Not a threat, an opportunity. pic.twitter.com/5WkAbWh918
— Marc ‘aUSDC is Money’ Zeller (@lemiscate) July 11, 2020
Meanwhile, coins related to this sector have gone parabolic, outpacing Ethereum. Such as Aave’s LEND token, which is up by over 700% since the middle of April. According to a prominent executive in the space, DeFi is likely to be boosted even further once Ethereum 2.0 goes live.
Unfortunately for the DeFi and Ethereum cows, there has recently been some discussion about an upgrade being pushed back.
Justin Drake, a researcher at the Ethereum Foundation, says that he personally doesn’t think the upgrade will debut this year. This appears despite many developers’ initial goals to roll out the update in the third quarter of 2020.
“All the above cannot happen in Q3 2020. With Thanksgiving on November 26 and the December holidays festd say, the latest practical opportunity for genesis in 2020 is mid-November, four months from now. As such, I’m now inclined to say that the effective practical date for genesis is something like January 3, 2021 (Bitcoin’s 12th anniversary). ”
$242 is a key high time frame level that bulls must flip before tomorrow’s weekly candle close takes place
After ETH’s decline at $ 250 made it slide lower parallel to Bitcoin, it established a trading range in the range of $ 236 to $ 242. The resistance at $ 242 seems to be gradually decreasing, as it has struggled to overcome the $ 240 level in the past day.
According to analyst Cactus, Bitcoin buyers must catalyze a sharp movement of sending cryptocurrencies in excess of $ 242 by the end of this week. He explained that a close above this level could send it up to $ 370, while a rejection here could cause it to return lower.
$ETH HTF Update
Price really needs to flip $242 on the weekly level pic.twitter.com/UcUNkeHwLj
— Cactus (@TheCryptoCactus) July 11, 2020
“ETH HTF Update: Price really needs to flip $ 242 on the weekly level.”
BTC now appears to be entering another consolidation phase as it trades around $9,200, and this could either provide a backdrop for altcoins to run against or could cause ETH and its peers to continue trading sideways.
You can also check Ethereum Price here.
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