Ethereum’s value proposition has been on the rise as the launch of the ETH 2.0 mainnet upgrade looms on the horizon.
It appears that investors are taking notice, as ETH has been caught in the throes of an intense uptrend over the past several days and weeks as the cryptocurrency continues setting fresh 2020 highs.
The three narratives that are primarily helping to drive Ethereum higher at the present moment are relating to ETH 2.0, DeFi, and EIP-1559.
As all of these narratives transition from being rooted in speculation to being more tangible, they will likely continue boosting Ethereum’s value proposition and price.
Ethereum 2.0 mainnet is one step closer to launching as Medalla multi-client testnet goes live
The implementation of the 2.0 mainnet upgrade has faced countless delays throughout the past year, although it is now growing closer by the day.
As outlined by Messari in reference to a recent Bitfly announcement, the Medalla multi-client testnet is now live.
This marks an essential step in the progression towards Ethereum 2.0 – which is expected to take place in November of this year – as it is the final testing stage before the mainnet launch.
Medalla will encompass multiple other clients – including Teku, Prysm, Nimbis, Lighthouse, and Lodestar.
The rollout of this multi-client testnet signals that the November launch date of the highly anticipated mainnet upgrade is becoming increasingly realistic.
The staking mechanism that the Proof-of-Stake (PoS) consensus mechanism will introduce, coupled with scalability solutions, are both expected to perpetuate an ETH buying frenzy.
This could help Ethereum continue pushing higher in the days and weeks ahead.
ETH 2.0 likely to bolster value proposition: Delphi Digital
As CryptoSlate reported last week, Delphi Digital explained in their recent “The State of Ethereum 2020” report that the launch of the Ethereum 2.0 mainnet will likely boost the cryptocurrency’s economic structure.
“Tying things together, EIP 1559 and staking [create a] symbiotic relationship where not only does increase usage drive value but the introduction of cash flows to a wider group of participants for securing the network creates a more effective long term value proposition [for ETH].”
It’s highly probable that Ethereum’s price action will continue reflecting the economic benefits that these fundamental developments will provide.
If the path towards the 2.0 mainnet launch is derailed by any unexpected developments or delays, however, this could strike a severe blow to the cryptocurrency’s uptrend.