Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

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Wed, 07/01/2020 - 13:17
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Vladislav Sopov
Ex-Messari analyst and seasoned macro investor Qiao Wang published a detailed review of the real and false Ethereum (ETH) price catalysts
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
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Top-notch macro analyst and investor, Qiao Wang, dismissed some delusions about popular Ethereum (ETH) price catalysts and indicated the drivers that could really work.

Don't overestimate network usage

According to a tweetstorm by Mr. Wang, typically, network characteristics are seen as the main Ethereum (ETH) price drivers. Despite the fact that the Ethereum 'network effect' looks healthy enough to win in a smart contract war, it doesn't directly boost the price.

Qiao Wang: Ethereum (ETH) adoption isn't its best price catalyst
Image via Twitter

Instead of this, the two most obvious catalysts for the Ethereum (ETH) price for Mr. Qiao Wang include:

  1. Transition to Proof-of-Stake (ETH2);
  2. Fixing monetary policy

With a Proof-of-Stake roll-out, a huge share of Ethereum in the circulating supply will be locked by stakers. A stable yield from the validation processes is the direct motivation for people to buy and hold Ethereum (ETH).

Should this be accompanied by the proper monetary policy (not limited to partial fee burning), such progress would definitely attract people to Ethereum (ETH).

Waiting for Ethereum (ETH) 2.0

To properly evaluate the Ethereum (ETH) price catalysts, Mr. Wang recommends avoiding searching for a direct positive correlation between network usage and the price of its native asset. He calls this bias 'lethal mind virus' and remembered that Silver (XAG) isn't as valuable as Gold (XAU) despite much broader industrial usage.

According to the analyst, people need much more evidence that 'Ethereum is money' to start using it this way. Consequently, the Ether community just needs to wait for the roll-out of the Ethereum (ETH) 2.0 zero phase or Beacon Chain.

Despite not causing an immediate and splendidly bullish reaction, Mr. Wang insists that he doesn't foresee a major down move either.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
Cover image via stock.adobe.com
Contents

While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)