The price impact of Serenity and ETH 2.0 stands to be way bigger than what Bitcoin halving would have had on BTC and altcoin prices. This is the analysis of one Ethereum supporter and a complementing observation to others who strongly believe that ETH is currently undervalued.
Thing is, it is hard to judge an asset that is not only affected by emotions and the hype element but is also highly correlated to how BTC prices move. Still, there are hints that Ethereum, as things stand, may appreciate in days ahead.
Ethereum 2.0 is not priced in.
— Anthony Sassano | sassal.eth (@sassal0x) May 26, 2020
Ethereum, despite accusations of being slow to agree on and implement changes that would cement its position as a smart contracting platform, has positive fundamentals.
Ethereum Scalability Is a Big Concern
Chief is the expected transition to ETH 2.0 (Serenity) and the final resolution of the network’s scalability challenges.
These challenges were expected bearing in mind that first, Ethereum is a public chain where commits and other proposals must first be vetted before activation via a software upgrade, and second, the network’s ability to scale via on-chain options has been consequential to dapps and users of the network. These two are pressing concerns which might laid to rest with Serenity.
Note that the MakerDAO loss in March 2020 was pinned to Ethereum’s temporarily blip that saw the network clog delaying the DeFi’s smart contracts from acting on time resulting to painful losses.
Regardless of obstacles, it is increasingly clear that Ethereum commands the smart contracting scene. A Coingecko report reaffirms the smart contracting platform’s position as a preferred DeFi Launchpad.
Another observation is that for the network’s perceived security, stablecoins issuers have been flocking to Ethereum. For comparison, despite launching in less than two years, ERC-20 version of the USDT has eclipsed XRP to third and is a dominant stablecoin.
Bitcoin Halving Versus ETH 2.0
Therefore, the final resolution and a smooth transition to ETH 2.0 has the possibility of pumping ETH and the network’s token prices.
But there is a big if. ETH may end up roaring to $280 or higher should the activation be smooth and is implemented on time.
For now, the optimism from supporters will only remain as it is—Hope. And whether Bitcoin Halving will comparably have a lower impact on ETH will depend on how prices will react once the Beacon Chain mainnet launches in H2 2020.
The potential price impact of ETH 2.0 is way, way, way larger than that of Bitcoin halving.
— Qiao Wang (@QWQiao) May 26, 2020