Ethereum (ETH) Solves One of Its Biggest Problems! Developments That Will Blow the Price!

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Ethereum killers have seriously taken advantage of its shortcomings. Alternatives such as AVAX, Solana literally went into flight in 1 year. High transaction fees, slowness of the network compared to alternatives and many problems could not weaken the most valuable altcoin. Currently, it is the most preferred platform for smart contracts Ethereum, moreover, the end of the chronic problems is coming, albeit slowly.

Will the Ethereum (ETH) Supply Shrink?

Developers have been for a long time PoW he’s plotting a roadmap for escape from his algorithm. Serious steps have been taken towards this goal and partial success has been achieved. PoS with the transition to the algorithm Ethereum of issuance deflationary it will be possible for it to become. This has already happened for several days in the past period. Network deflationary this means that it burns more (on a daily basis) than the amount of ETH produced. Of course, such a narrowing of the supply will lead to a shortage, and naturally this will lead to an increase in the price.

In the coming months and years ETH those who think that its price will rise steadily cling to this detail the most. ETH 2.0a complete transition to will make this possible. Another important development is deflationary while the effect is expected to occur after this transition, we have witnessed examples of pre-transition due to increased network activity.

Held in July 2021 London an important plus of the hard fork is, ETH it was the deflationary action of the incineration mechanism. Now every transaction is a transaction that leads to the removal of more ETH from the ecosystem, which should increase the scarcity and value of ETH as an asset ETH he sees that his percentage has been destroyed.

Will Ethereum Mining End?

Of course, mining will not end, but the reward of 2 ETH per block will fall by more than 10 times. At the end of last year, Proof-of-stake When Beacon Chain went live, the foundation of the transition to Eth2 was laid and users were required to become verifiers Ethereum‘finish the stake allowed to. This is a kind of “capital” that has replaced the role of existing miners who use physical hardware to verify transactions, add new blocks, and generally maintain the network.

As of November 17, 2021, the minimum required to become a verifier in the chain is 32 ETH‘yi the stake eden has more than 260,000 verifiers. The financial equivalent of this at the current ETH exchange rate is more than $ 34 billion.

Developers pointing to the second quarter of next year ETH 2.0 he expects his transition to be completed soon. Of course, in the best case scenario, this date is pointed out. Vitalik Buterin, who is more cautious, had stated the first quarter of 2023 as the date for the transition. Regardless, mining fees will fall, and if the price of Ethereum does not increase incredibly, the miners’ earnings will be seriously reduced. Will it be possible to reduce transaction fees? Although the PoS algorithm will be switched to, transaction fees will be little affected at the first stage. So, accordingly, we can predict that its alternatives, expressed as Ethereum killer, may continue to grow for the next two years.

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