Ethereum price just slumped to a nine-month low, wiping out virtually all gains it has made this year. The shift has been part of a market-wide decline catalyzed by Bitcoin’s drop below $7k. Therefore, many have convinced that ethereum price prediction will recover at any time soon and here’s why.
Ethereum Price Posses Strength to Make a Comeback
There has been a lot of negativity about Ethereum. The researchers predict that this may result in its bearish performance. At present, Ethereum has a record low of $134. It is now not far off its yearly bottom and a long way from the 2019 top. Ethereum isn’t the worst performing altcoin in the top-10 though as Litecoin, EOS and Binance Coin have dumped 7-8% in the past few hours.
Messari, the research firm, has recently made their contributions in the latest “Crypto Thesis for 2020” paper. The paper doesn’t paint the network in a very positive light. The founder Ryan Selkis analyzed and pen down in his own words that he compiled 120 nuggets of his clearest thoughts into one 70 page report. This paper isn’t an objective analysis. But is a collection of his and his team’s strong convictions for the decade ahead.”
A recent ConsenSys article states about Ethereum by the numbers to reveal some impressive figures for the world’s 2nd largest digital asset. Ethereum, in terms of network, has over four million new active addresses and over 20 million total accounts created in 2019. Above all, Ethereum currently has over 8500 live ethereum nodes and over 4.7 million ETH issued as block rewards.
No Ethereum 2.0 Until 2022
Another report suggests that Ethereum 2.0 will not be available for mainstream use until 2022. Because the Serenity rollout consists of seven phases. The roadmap to Serenity, in brief, is already covered in one of the Consensys’s articles.
Beacon chain will essentially manage network validators, ultimately assigning them to individual shards. The new chain will be proof of stake with rewards for those that lock up 32 ETH 1.0 tokens on the chain.
There is a caveat however according to the paper:
“That one-way bridge into the new system is also contentious, but it means ETH1 supply will start getting effectively burned once token holder begins claiming beacon chain validator slots.”
According to Messari, Phase 1 which will introduce 64 shard chains isn’t expected until 2021. This parallel processing upgrade will be the key to scaling. But the report continues to add that no network the size of Ethereum has successfully sharded its blockchain.
On the other hand, Phase 2 is the full launch which includes a new eWASM virtual machine and massive dApp migration through smart contracts. Naturally, this will not be rushed out, and the research suggests late 2021 being optimistic.
Ethereum 2.0 is a brand new blockchain. And, it’s going to be a chaotic and high-risk transition. Furthermore, the report continues to elaborate on ETH 1.0 governance adding that there are three goals to boost performance and reduce blockchain bloat.
The only positive sentiments from the Ethereum section so far is the DeFi developments. The fact about ETH is that it has a robust aggregate economy. And it carries sufficient liquidity to function in this financial market of the future.
So, what do you guys think? Will the Ethereum price upgrade can create a stable financial system?