For the ETH price to pump, Qiao Wang—a serial startup investor and advisor, says the migration to Proof-of-Stake (Beacon Chain) must be seamless. It will also be a bonus for holders if Ethereum developers fix its monetary policy. Without these two, he observes, there are no major fundamentals to drive prices in the immediate and medium-term.
The Altona Simulator is Live
His comments come at a time when developers are confident of smooth flow to Beacon Chain mainnet.
That said, I actually don't think Ethereum beating competitors in terms of usage is the most bullish signal. All else equal, it's a positive, but it isn't as big of a positive as you might think. https://t.co/KcZB8uWd8z
— Qiao Wang (@QWQiao) July 1, 2020
The success of Beacon Chain and Phase 0 will pave the way for Phase 1 and 2 where Ethereum will gradually roll out new features eventually culminating into a new high throughput and energy-efficient network characterized by low fees and a tighter monetary policy.
At the moment, the Altona simulator has been activated with four multi-clients. For the second time—and following the success of the Schlesi test network where three clients including Prysmatic Labs were involved, Altona is focused more on user-experience. This is an exhibition of confidence, a mark that should technically pump ETH prices.
Meanwhile, ETH prices remain tepid, ranging within tight trade ranges and trending below important resistance levels.
Technically, the success of subsequent test networks will set the pace for a July 2020 mainnet launch subsequently driving Ethereum dominance in the crowded smart contracting arena.
Ethereum EIP-1559
Despite claims of loose monetary policy, the amount of ETH released over time has been comparably low, even better than as outlined in their white paper.
Still, going forward, Ethereum developers have expressed their decision of even tightening their policy while simultaneously ensuring the integrity and security of the Ethereum network.
Specifically, it will be vital for developers to be incentivized and compensated at competitive rates especially at this critical time of transition or even after the first few months after the network has moved away from a Proof-of-Work consensus algorithm.
EIP-1559 has been controversial but supporters say it is a permanent fix and the final cog of Ethereum economic system.
Aside from improving the user interface around Gas management by establishing the “market rate” for block inclusion, it also burns the majority of ETH in TX fees.
Through burning, all ETH holders benefit and introduce a deflationary mechanism to ETH’s supply.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich 