Messari Crypto Researcher Believes Ethereum Will Struggle Next Year
The price of ETH has just declined to a 9-month low, thereby losing almost all the gains it has accrued in 2019. It is one of the cryptocurrency market moves that was influenced by the decline in the price of BTC to under $7,000. However, some people remain resolute that the price of ETH will not return to the upside soon and the reasons are discussed here.
In recent times, some market participants have been negative concerning ETH, and it could have contributed to its bearish performance. A research company known as Messari wrote a paper entitled ‘Crypto Thesis for 2020’ recently and is somewhat negative about the Ethereum network.
It was written by the founder of the firm known as Ryan Selkis. According to him,
WOAH (as @APompliano would say)
I just published my most ambitious piece in the ~7 years I've been studying crypto full-time:
"Crypto Theses for 2020"
Over the past eight days, I compiled 120 nuggets of my clearest thoughts into one 70 page report.https://t.co/dMSafdfW5k
— Ryan Selkis (@twobitidiot) December 16, 2019
The report discussed many things, but this article focuses on the parts that talked about Ethereum.
According to the report, ETH 2.0 will not come up until 2022 at the earliest due to the seven phases within the Serenity roll out. Selkis noted that there is a likelihood of the first phase known as Phase 0 or Beacon Chain, to be introduced sometime next year.
It explains the Ethereum 2.0 roadmap as the management of network validators will be carried out by the beacon chain, eventually designating them to individual shards.
Those who lock up 32 ETH 1.0 tokens on the chain will be rewarded in the new chain. Nevertheless, the paper maintained the following;
“That one way bridge into the new system is also contentious, but it means ETH1 supply will start getting ‘effectively burned’ once token holder begin claiming beacon chain validator slots.”
Messari continued that there will be the introduction of 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 has been able to shard its blockchain.
Featured image courtesy of Shutterstock. Source: CryptoPress.