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Ethereum (ETH) Stock-to-Flow Model By Crypto Evangelist Alex Saunders Predicts Very Low Inflation of ETH2

News
Wed, 05/27/2020 - 11:40
Vladislav Sopov
The stock-to-flow model for the Bitcoin (BTC) price is a favorite among bulls. It seems as though Ethereum (ETH) maximalists now have their own 'dream narrative'
Ethereum (ETH) Stock-to-Flow Model By Crypto Evangelist Alex Saunders Predicts Very Low Inflation of ETH2
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Contents

Alex Saunders, an Australian crypto investor and the CEO and founder of the Nuggets News education resource, has published his calculation of Ethereum (ETH) scarcity. 

Ethereum S2F charted: 'Monetary policy is evolving'

The 'stock-to-flow' model, implemented for Bitcoin (BTC) by seasoned analyst and trader PlanB analyzes the scarcity of an asset. 'Stock-to-flow', in this context, means the relationship between the production of an asset and its available circulation quantity.

According to Mr. Saunders, Ethereum (ETH) S2F at the end of 2019 was 21.95. For Silver (XAG) this figure stayed at 22. So, it is the year 2020 when Ethereum (ETH) will surpass it in terms of scarcity. By the end of this turbulent year, the ETH stock-to-flow will reach 28.25.

For the calculations that cover the period of 2021-2022, Mr. Saunders assumes that Ethereum (ETH) 2.0 will be rolled out in time and Ether mining will be replaced by staking.

If this occurs, Ethereum (ETH) scarcity has a bright future.

Very low inflation in Ethereum (ETH) 2.0

Hypothetically, after the first year of the existence of Ethereum (ETH) 2.0, the ETH 'stock-to-flow' is going to skyrocket by 100%. In these terms, it will come closer to Gold (XAU) with its very high S2F of 62.

Some commenters asked Mr. Saunders about levels of inflation in Ethereum (ETH) in the Serenity epoch. According to him, inflation will eventually decrease to 2%.

This is very close to the inflation rate of Bitcoin (BTC) in its fourth era, which is estimated at 1.8%.

It should also be noted that the annual yield of ETH2 staking is estimated between 4-5% (Ethereum developers) and 17-20% (Adam Cochran of Metacartel Ventures DAO)

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.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

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

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

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.)