Ethereum is one of the strongest cryptocurrencies of 2021, its price has risen by more than 437% since the beginning of the year. It’s also one of the high-priced cryptocurrencies, just under $ 4,000 at press time.
In addition, the upgrade from Ethereum to Ethereum 2.0 will run throughout 2021 and will last until 2022. The Altair upgrade was activated on October 27th on the mainnet. The upgrade to chain signals Ethereum to test the transition to proof-of-stake (PoS) block mining.
Finally, ETH’s main chain will merge with the Beacon Chain in 2022 to complete the Ethereum 2.0 upgrade.
An omitted item
Macro-investment strategist Lyn Alden confirmed in an interview that the aforementioned “below-observation” catalyst could boost ETH for the next year, adding:
“What I’m looking at is the Ethereum key contract. You started Beacon Chain about a year ago and are working on that staking, and that’s one direction. After you lock the coins, they will stay there until something changes or until a merge occurs. “
She added, “Bitcoin goes public pretty quickly, but Ethereum that comes out of the exchange is even a bit faster, in part because it goes into that contract,” added, “… As it stays that way, it is this is a pretty strong bullish variable. ”
According to the distributed ledger explorer Etherscan, crypto investors have locked 8,808,738 ETH worth 35 billion US dollars in the smart contract. People who put their ETH in smart contracts are trying to become validators for the next iteration of Ethereum
And then?
However, the executives are easily concerned. Here’s why.
“I think once it’s consolidated and unlocked it could be a liquidity event. Some of these coins have substantial returns and some people may want to take profits off the table. I am no longer sure after the merger. ”
She further mentioned
“Ironically, it could be one of those things that sell news events that a lot of predictions are based on and then maybe the kind of catalyst that cools down over time.”
Therefore, a sell-off event could occur.
Overall, the consolidation can be said to be a highly anticipated event for Ethereum. Various analysts had high hopes for this. At the time of going to press, ETH has been trading below the $ 4,000 mark for some time. It remains to be seen whether the consolidation will have a positive impact on value.