The former CEO of BitMEX suggested that this year, thanks to the upcoming transition of Ethereum to the Proof-of-Stake consensus algorithm, the ETH price will reach $3,000.
Arthur Hayes stated that the reduction in the number of ethers after the successful transition to Ethereum 2.0 will be a powerful impetus for the growth of the ETH rate. After the merger, the daily issuance rate of the coin will drop from 13,000 ETH to 1,600 ETH. The growth of the crypto asset rate will be affected not only by a sharp reduction in the number, but also by the need for users to use the Ethereum network. Now it is on the basis of this network that decentralized applications are being created, Hayes states:
“Unless there is a drop in interest in DeFi projects, the demand for Ethereum will exceed the supply. Therefore, the price of the coin should rise despite the long-term decline in the cryptocurrency market and the current macroeconomic environment, with the US Federal Reserve raising interest rates to curb inflation.”
According to the forecast made by the former head of BitMEX in April, this year the price of Ethereum should reach $10,000. Now Hayes’s forecasts are no longer so bold, and he decided to lower the bar to $3,000. fall by about 20%.
This week, the developers of Ethereum activated the Bellatrix update. The merge should be completed in less than a week after the Paris update rolls out. However, Hayes considers it quite reasonable to doubt that this event will take place. The Ethereum merger has been talked about for years, so it’s entirely possible that something could go wrong during the transition. In addition, the cryptocurrency community would have been more optimistic about the successful transition of Ethereum to PoS, if not for the liquidity crisis after the May collapse of the Terra project.
Hayes recently suggested that in the event of an unsuccessful merger, the price of ether could collapse sharply, but should not fall below $800.
Source: Bits
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