The launch of ETH 2.0 Phase 0 took place on schedule, but ETH did not skyrocket.
The leading altcoin rose 5% on the day to over $ 630 but dropped after that. The expected price surge did not happen, despite the fact that the upgrade is proceeding according to the Roadmap. To launch the upgrade, it was necessary to transfer 525 thousand ETH to the deposit smart-contract. Just 2 weeks before the launch, only 20% of this amount was transferred. Ethereum founder Vitalik Buterin made several optimistic statements, and it worked: the entire amount and even more was collected on time. According to the website launchpad.ethereum.org, 885,000 ETH were deposited. Obviously, such a big score wasn’t brought by private investors. Most likely, large funds and companies invested in staking. This is very positive for ETH in the long term, as the funds on the deposit remain frozen until the launch of Phase 1.5 in 2021.
The exact launch date for Phase 1.5 has not been set. Phase 0 (full name Phase 0: PoS beacon chain without shards) only triggers staking instead of Proof-of-Work consensus. Staking gives investors the opportunity to receive passive income by saving at least 32 ETH on the account. The annual yield as of today is 20%. A full transition to staking will take place in Phase 1.5, when the current blockchain will be added to the new ETH 2.0 blockchain as a shard (blockchain side chain).
Leading cryptocurrency exchanges have already announced that they are ready to add the updated ETH, counting on the growth of this cryptocurrency’s turnover. Some have already added. Binance, in particular, is running a promotion on this occasion with a draw of 320 ETH. The new token is called BETH, it can be obtained by exchanging ETH in a 1: 1 ratio.
Analysts are positive about ETH. It is believed that the leading altcoin could become the best investment of all altcoins in 2021 and outperform XRP, Litecoin, and Binance Coin. However, just now, DeFi tokens launched on the Ethereum blockchain demonstrate a big rise. Decentralized finance has become very popular in 2020, with returns on some of them reaching tens of thousands of percent. Now DeFi tokens, including UNI, COMP, YFI, CRO, AAVE – are growing by tens of percent in a week. The transition to Proof-of-Stake will significantly increase the volume of transactions. According to Vitalik Buterin, the goal of the upgrade is to achieve a performance of 100K TPS. If confirmed, then DeFi tokens may remain the most profitable investment in 2021 as well.