Ethereum: Will It Struggle In 2020 and Surge Later?
This year, ETH’s price declined to a 9-month low, hence losing almost all the gains it accrued. The decline is one of the cryptocurrency market moves, influenced by the decrease in BTC’s price at $ 7 000. Some individuals, however, believe that the price of ETH will not surge anytime soon.
Some market participants are negative concerning ethereum, and this may be contributing to its bearish performance. One of these participants is Messari company researcher, who wrote a paper entitled Crypto Thesis 2020, and is somewhat cynical about the Ethereum network.
This researcher is known as Ryan Selkis, and he claims that he studied cryptocurrency for seven years on a full-time basis. The researcher said he took eight days to complete a one 70 page report, addressing many issues, including reasons why ETH may struggle in 2020.
Messari’s Crypto Researcher: Reasons Why ETH May Struggle In 2020
According to Messari researcher’s report, ETH 2.0 price will not surge until 2022 at the earliest. The researcher says this, referring to the seven phases within the Serenity roll out. Selkis pointed out that there is a likelihood of the first phase, known as Phase 0 or Beacon Chain to get introduced sometime next year.
Selkis’ report explains the ETH 2.0 roadmap as network validators’ management will get carried out by the beacon chain, eventually designating them to individual shards.
As per Crypto Thesis For 2020, those who lock up 32 ETH 1.0 tokens on the chain will get rewarded in the new chain. However, the report stated that one way the new system’s bridge is also contentious, meaning ETH1 supply will start getting effectively burned. Once taken, the holder begins claiming beacon chain validator slots.
The Messari researcher insisted that there will be 64 shard chains in Phase 1, but will not come until 2021. However, despite that the parallel processing upgrade is crucial to scaling, the report maintains that no network with the size of Ethereum can shard its blockchain.