Ethereum (ETH) Finally Started to Rise, Though ETH 2.0 Launch Probably Will Be Delayed

Ethereum (ETH) Finally Started to Rise, Though ETH 2.0 Launch Probably Will Be Delayed

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Despite the announcement of the postponement of the Ethereum 2.0 launch, ETH has finally begun to grow, after bitcoin and other leading cryptocurrencies.

Despite the likely postponement of the zero phase of ETH 2.0, Ethereum is growing on the optimistic statements of Buterin and investments of Arab sheikhs. The launch of Ethereum 2.0 phase zero should occur on December 1. However, experts point out that highly likely this will not happen. Ethereum update is related to the transition from the Proof-of-Work consensus to a more stable, secure, and energy-efficient Proof-of-Stake consensus. With such a consensus, the support of 16 thousand validators is required, and it also needs to have 524K ETH on the depository smart contract. This amount should be collected on November 24th. And now there is only about 20%. 10 days ago it was 10%. So the probability of getting 100% in 4 days is very low. Obviously, the transfer of the update should have a negative impact on the price of the leading altcoin. But in fact, it turned out that it grew by almost 8% per day. What influenced ETH so much?

First, Vitalik Buterin made an encouraging statement on social media aggregator platform Reddit. It is not known whether the creator of Ethereum made a reservation or if this is true, but according to Buterin, there are technically no obstacles to achieving a blockchain capacity of 100 thousand TPS. Earlier he talked about 1000 TPS. This will be a huge improvement over the current 15 TPS speed. Overall, Buterin believes that things are going even better than he imagined and that the ETH 2.0 update is happening faster than previous network updates.

The postponement of the launch of the zero phase, according to Buterin, does not carry any special risks, it will take place a week after the ETH appeared on the deposit. And this is inevitable. In addition, Buterin reassured those investors who fear that their funds will be frozen for a long time if the launch of ETH 2.0 is delayed. Vitalik promised to make a hard fork so that the stackers could recover their assets.

Buterin’s verbal intervention backed ETH. And besides, there were other events that made Ethereum grow. The Arab investment company IBC Group has invested in the ETH 2.0 update. Based in Dubai, the company bought 20K ETH to deposit ETH 2.0. Khurram Shroff, chairman of the IBC Group, said he was impressed with the project and that his company was confident in a happy future for Ethereum.

Staking, which is the basis of the Proof-of-Stake consensus, promises a profitability of over 21% per annum with a minimum deposit amount (525K ETH). If the deposit grows to a million ETH, the interest will drop to 15%. But in any case, this far exceeds the profitability of fiat deposits anywhere in the world. So the Arab fund’s investments are backed by more than just a belief in the idea of ​​cryptocurrencies.