Top Analyst Predicts Ethereum (ETH) Price To The Moon After Its Triple Halving
Popular trader Lark Davis discusses with his 408K subscribers about Ethereum (ETH) 2.0 Network upgrade and its implication for the price of ETH.
Post Elon Musk’s comments of owning Ethereum (ETH), the world’s second-largest cryptocurrency has surged more than 10% in the last 36 hours. At the time of the video, Ethereum is trading 4.70% up moving above its crucial resistance of $2000.
According to the analyst, Ethereum will be under going the so called “Triple Halving” as part of the ETH 2.0 upgrade. This is a highly significant economic event for the asset which has serious implications for the price of ETH in the coming years.
Davis highlights that the daily pressure to sell Ethereum is $25.6 million. The reason for this selling pressure is that Ethereum is using a proof-of-work (PoW) protocol, miners are constantly selling, dumping the market:
“Miners run a cash business. We are in a mine and dump economy for ETH.”
Ethereum 2.0 will bring a fundamental shift
The trader points out that Ethereum is about to undergo a massive upgrade that will fundamentally change ETH forever.:
“Developers are fast tracking “The Merger” which will end proof of work forever and usher in the proof of stake era. The Merger could happen by the end of 2021, or perhaps early 2022,”
One of the first obvious implication of this upgrade is the transition from a mine and dump economy to a stake and restake economy: “Proof-of-stake encourages saving since the more ETH you have the more you make. Proof-of-work encourages selling.”
Another major aspect the analyst notes is that the PoS transition will cut down emissions by 90%. Thus, the daily block rewards will reduce from 12,800 to 1280 ETH and inflation will also be one-tenth from the existing 4.3% to 0.43%, equivalent to 3 Bitcoin halvings.
Moreover, EIP 1559 will introduce fee burning and will be another factor to make ETHER rarer and moon the price.
To the moon?
According to the analyst, with all of the above-mentioned factors and the rising record in demand for access to the Ethereum blockchain for Defi and NFTs is a perfect formula to take the ETH price to the MOON.
“90% supply emission drop coming + shift to stake and HODL economy + fee burning + soaring demand = MOON.”
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