Ethereum 2.0 Staking Upgrade Can Trigger A New ETH Price Rally

One analyst is in the cryptonews today for suggesting that staking may trigger a bull run for the price of Ethereum (ETH) in the near end. But how would an Ethereum 2.0 staking upgrade do this all on its own – generating this amount of demand?

The truth is, Ethereum 2.0 is something that is coming and we can see how the project has dragged its feet lately. However, when the launch is announced (which will probably be in July), the biggest altcoin out there (ETH) will be transformed from a no-frills proof-of-work protocol to a fully fledged staking platform.

After this, instead of competing against each other to solve puzzles, the users who accrue the most wealth or stake will be in charge of validating transactions. This is the fundamental Ethereum 2.0 staking upgrade which some experts believe could catalyze a major bull run for Ether (ETH). One of them is a partner at MetaCartel Ventures DAO, Adam Cochran. In the latter half of April, Cochran composed a 50-tweet-long rationale for the ETH 2.0 project, rendering one of the biggest “economic shifts” society ever witnessed.

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Whales are increasing their stake.🐳

New whales are funneling in. 🐋

Eth is more transacted than BTC. 🔷

There was more capital inflow into ETH than to BTC.💸

— Adam Cochran (@AdamScochran) April 29, 2020

Cochran went on stating that not that much ETH can stake first round which is why he predicted staking returns of 17% early on this year. He spoke about how whales are accumulating and miners are doing that too, and how ETH is as decentralized as Bitcoin and how ETH founders still hold most of their ETH.

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Eth is as decentralized as Bitcoin. 😎

ETH founders still hold most of their ETH. 💪

Vitalik donates 1 ETH to the ecosystem for each ETH he sells. 🙏

— Adam Cochran (@AdamScochran) April 29, 2020

While that my wishful thinking, the analyst is on firmer ground when he suggests that staking could drive an Ethereum supply shock and a higher ETH price. In short, Cochran believes that dependable staking rewards of 3% to 5% will attract capital from large investors until around 30% of the total supply is locked up.

Cochran basically theorizes that supply shock will create fear-of-missing-out (FOMO) buying among retail investors who are not interested in technical analysis and basically “just want in.” Unlike the 2017 bull run where getting fiat in an exchange was a headache, the FOMO could be amplified because it is now significantly easier for new people to buy crypto with fiat on exchanges like Binance (popular category: Binance news).

This is why the analyst believes that the Ethereum 2.0 staking upgrade will bring many novelties to both new and established investors in the space.