Rajarshi Mitra
Independent Analyst
- Ethereum is witnessing a surge in transaction activity due to the DeFi boom.
- Spartan Group co-founder Kelvin Koh said that ETH 2.0 will help in the improvement of the network.
- ETH 2.0 will significantly reduce network clogs as it drops Ethereum’s dependence on miners.
The anticipation of Ethereum 2.0 is continuing to rise as the activity on the network is surging. Kelvin Koh, the co-founder of venture capital firm Spartan Group, has recently said that ETH 2.0 will have play a key role in the growth of the network. According to Koh, every phase of ETH 2.0 over the next couple of years will bring Ethereum closer to its final stage and will be “catalysts for ETH.”
For many years, experts have considered scalability to be the main obstacle in adopting decentralized applications (DApps). These DApps, which include DeFi protocols, process all data on-chain, on the Ethereum blockchain. When a prominent number of transactions are unconfirmed, it causes the Ethereum network to clog.
Ethereum 2.0 is expected to significantly reduce network clogs as it drops Ethereum’s dependence on miners. Eventually, as ETH 2.0 gets launched, miners will get phased out from the network. Users will then process data by “staking” their ETH. In return, they will earn incentives based on ETH 2.0’s reward system.
According to Delphi Digital’s analyst Alex Gedevani, Ethereum still has room for growth. Gedevani said that as ETH 2.0 will shift Ethereum to the Proof of Stake (PoS) consensus model, it will support additional validators and users.
As a $36 billion asset compared to a growing DeFi ecosystem with $3.8 billion TVL, ETH PoS has potential for large materiality. The Beacon chain will have the capabilities to support 10s of thousands of validators, more than any other PoS protocol.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.