We all know by now that Ethereum is trying to move to a PoS (Proof of Stake) system. This would lock up around 70% of all circulating Ethereum on the network as many people and companies would stake the Ethereum in order to earn more. We also know that fees have been high on Ethereum reaching as high as $70 and roughly $5 per transaction. This is also being worked, which leads me into DeFi which Ethereum was the first and still dominate force.
The DeFi Aspect
DeFi is expected to grow to 1 trillion in market cap by the end of this year. At the moment 25% of ALL Ethereum is currently locked up in smart contracts most of them which relate to DeFi. Now imagine how much would be locked up in DeFi if we hit a 1 trillion market cap nearly 20x what we are currently at.
With reduced fees, reduced supply and burns and moving to a proof of stake system to lock up even more funds there are all things that will restrict the supply of liquid Ethereum. This would likely skyrocket the price per Ethereum to the moon.
However is it too much all at one time?
All three of these things are expected to happen over the next six to nine months. That's actually a very short time frame when it comes to crypto.
Too Much Too Fast?
With too much restriction even though we might see a moon shot on Ethereums price it could quickly be diminished at it just becomes too hard to get your hands on Ethereum. But in a way the same thing could be said about Bitcoin.
The liquid supply of bitcoin is rather low and a large majority of it is locked up in large wallets or honestly never to be seen again due to lost wallets. Bitcoin is also getting a upgrade in November allowing it to do smart contracts with reduced fees yet the price of Bitcoin continues to rise.
What do you think?
Is Ethereum shooting themselves in the foot with all of these changes or will we see it moon to all new levels within 9-12 months?
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Your post is reblogged and upvoted by me. It is a good post. Thank you @bitcoinflood
This DeFi should yield positive result for ethereum. I have this feelings that ethereum is about to fly to the moon. Thanks for updating us.
I think ETH is trying to change too fast but I am not really invested in it. At least for me, I consider the changes as something that most people would accept but I feel like the miners itself might start affecting performance.
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I think Eth is way better than Bitcoin, but that might mainly be because of Vitalik same with Cardone and Charles.
I am still holding Bitcoin, its just a storr of value for me
This DeFi should yield positive result for ethereum. I have this feelings that ethereum is about to fly to the moon. Thanks for updating us.
Changes often make things more exciting. I think ethereum is prepping for the moon. . The 9-12months will be really great.
Only thing is for sure, The Defi will certainly boom due to this changes
For me it is not really too much but probability of meeting up with that six month to nine month is what i am looking at since we still have 80% to go
I think it will be a good thing for ETH. There is likely some tokens that people will be more willing to move around if the price of gas drops. There might be a lot of people staking theirs, but I think there will also be a lot more movement.
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I think they are trying to improve. I'm not sure if it will moon in the next year but I believe the net effect will be positive
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