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

News
Wed, 05/27/2020 - 11:40
article image
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
Cover image via www.facebook.com
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)

article image
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

News
Fri, 01/15/2021 - 18:02
article image
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.

article image
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.)