Staking and DeFi is going to put far more demand on Ethereum price than ICOs ever did
Since the beginning of the year, the Ethereum price has been performing quite well. According to data from TradingView, the top altcoin is trading about 80% higher than the price starting in 2020. Analysts expect ETH to increase further in the coming months and years because of the fundamentals of the lending network to increase demand for assets. A fund manager and analyst in space have gone so far as to say that at $ 243, the price of Ethereum is quite impressive.
The fact that Ethereum price is currently trading at $ 243 is hilarious
According to Mythos Capital founder Ryan Sean Adams, the fact that Ethereum is currently trading at $ 243 is hilarious. The investor, who co-organized the Bankless podcast with David Hoffman, said that Stakes and DeFi would set more demands for ETH than ICOs did.
Staking plus DeFi is going to put far more demand on ETH than ICOs ever did
ETH at $243 is hilarious
— Ryan Sean Adams – rsa.eth 🏴 (@RyanSAdams) July 22, 2020
“Staking will incentivize investors to accumulate ETH and how DeFi incentivizes users to purchase and lock their coins in contracts. In theory, these two factors should drive demand for Ethereum while reducing market supply, pushing prices higher.”
Although it is a common sentiment among investors that betting and DeFi will send Ethereum higher, there are barriers to overcome. First and foremost, the launch of ETH2 is still in the air, with developers having conflicting opinions about when to upgrade.
Justin Drake, a prominent researcher for the Ethereum Foundation, commented on Reddit earlier this month that he is haven’t convinced the upgrade should go live in 2020:
“All the above cannot happen in Q3 2020. With Thanksgiving on November 26 and the December holidays, I’d 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). ”
Drake consulted his belief that for the upgrade to launch smoothly, Ethereum developers will need to launch a public testnet, bug bounty, and attack network.
Drake’s sentiments were notably opposed by Vitalik Buterin, the founder of the cryptocurrency. Buterin thinks that ETH2 can and will launch in 2020.
The second barrier related to the potential of shares and DeFi is the catalyst for price increases is high transaction fees.
Not long ago, Ethereum trading gas was extremely high due to the recent increase in adoption. Analysts, including those who are ETH bulls, fear that these fees will prevent adoption and potentially act as a catalyst for the adoption of other blockchains.
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