Ether (ETH) Close to Magical Chemical Reaction: BTC.TOP CEO Jiang Zhuoer
Mr. Jiang Zhuoer is the CEO of top-tier Bitcoin (BTC) mining pool BTC.TOP. Now defunct, it used to sit in the top 10 mining pools by hashrate. Today, Zhuoer shared his estimation of the upcoming Ethereum (ETH) "supply shock."
EIP-1559 + Ethereum 2.0: Combo for Ethereum?
According to Mr. Jiang Zhuoer, the implementation of EIP-1559, which allowed Ethereum (ETH) to partially destroy transaction fees, has already reduced its supply dramatically.
The amount of #Ethereum burned in EIP-1559 is equivalent to one BTC halving.
— Jiang Zhuoer BTC.TOP (@JiangZhuoer) April 25, 2022
In addition, the transition to #Ethereum 2.0 equals 2-3 times #BTC halving (depending on how much ETH are stacked to POS). pic.twitter.com/nXiPjWCOUX
Per his estimations, EIP-1559 implementation is as influential as one Bitcoin (BTC) halving. However, the most powerful calalysts for the second cryptocurrency are yet to come.
Namely, once Ethereum (ETH) migrates to a proof-of-stake (PoS) model, its liquid supply will undergo a 100-200% more impressive shock. Its exact impetus will depend on how many Ethers will actually be stacked in the ETH2 deposit contract.
Vladislav SopovBy press time, despite the correction of the Ether (ETH) price, the net value of the Ethereum 2.0 deposit contract inches closer to $35 billion in equivalent. Depositors have locked 11.8 million Ethers so far.
Is "flippening" finally coming?
This combination will make Ethereum really scarce in effect, Mr. Jiang Zhuoer supposes:
The combination of EIP-1559 and ETH 2.0 would generate a magical chemical reaction - a real deflation. In terms of total supply, Ethereum decreases as more and more ETH are burned every day, which makes Ethereum greater that the Bitcoin with a fixed total supply.
Also, many Ethers (ETH) are locked in decentralized finance applications, staking protocols, liquidity providing modules and so on. As such, the number of bullish catalysts for the second crypto increases every day.
While the Bitcoin (BTC) supply is fixed and its emission reduces only once every four years, Ethereum (ETH) could eclipse it by market capitalization due to price increase.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Related articles
Dan Burgin
Tomiwabold Olajide