Ethereum 2.0 Might Be the Catalyst Behind Rising Cryptocurrency Accumulation
Bitcoin halving has been successfully completed after being heavily publicized and the emergence of several speculations regarding its possible influence on accumulation. Accumulation rates of cryptocurrencies have been rising for some time now, even following the event that reduced Bitcoin supply.
The top holder model of Santifeed monitored the largest addresses for each ERC-20 token and it was realized that they were either hodling or accumulating greater total supplies over time. That is, the result shows that the majority of the hodlers in the market are anticipating bullish price movements in the near-term, towards the accumulation of more profits. However, the question that comes to mind seeing this result has to do with what is catalyzing this trend.
It is believed that the much-awaited Ethereum 2.0 is a potential driver of this trend. Ethereum 2.0 is fundamentally a shift in the blockchain’s consensus mechanism from a proof-of-work [PoW] consensus algorithm to proof-of-stake [PoS]. Some remarkable barriers and missed deadlines have been facing its release.
Initially, Phase 0 was scheduled to launch in the second week of January 2020 but was postponed at the last minute. In March, it was reported that the plan was to roll-out Phase 0 prior to the fifth anniversary of Ethereum in July, but it might not go as planned. Vitalik Buterni noted that Ethereum 2.0 is still very much on track despite its unclear schedules.
Without regards to the delays, market participants still consider Ethereum 2.0 as a major development, as evident by the positive price action of ETH in recent times (it held its position at $200). Bitcoin halving was able to cause an upsurge in the price of Ethereum after the market crash in March, with the nascent transition to an entirely new economic model for Ethereum blockchain garnering remarkable traction in the cryptocurrency space.
This is such that in recent times, Messari’s Ryan Watkins noted on Twitter that Ethereum 2.0 possesses a stronger catalytic effect than the Bitcoin halving as it is an unsure and basic change.