Lyn Alden points to the catalyst that will increase the price of Ethereum in 2022
Macro-investment strategist Lyn Alden points to an overlooked factor that could catalyze Ethereum’s price spike in 2022.
In a new interview on the YouTube channel Investment Made Simple, Alden to explain why the amount of ETH contained in the Ethereum 2.0 staking contract serves as a bullish indicator.
“What I’m looking at is the Ethereum key contract. You started Beacon Chain about a year ago and are entering into a staking deal. Once you lock the coins they will stay there until something changes or until the merge is complete. One thing that I looked at is that Bitcoin is getting out of the exchanges pretty quickly, but Ethereum is getting out of the exchanges a little faster, in part because it goes on that contract.
Basically, an illiquid supply is forming and as long as it continues it should be a pretty strong bullish variable. I mean, there is more than 8 million ETH in that contract now. I think maybe almost 9 million. I haven’t tested in a couple of weeks, so overall it’s a bullish catalyst. ”
The Etherscan Distributed Ledger Explorer shows that investors have locked 8,793,458 ETH worth $ 35.43 billion in the smart contract. Those who deposit ETH into the smart contract are trying to become validators for the next iteration of Ethereum.
However, Lyn Alden is also concerned about the sell-off if this locked ETH opens.
“I think once the merger is complete and unlocked it could lead to a massive sell-off. This part of ETH is pretty profitable and a lot of investors will take profits, so I’m not sure about what happens after the merger. Ironically, it might be one of those who sell the news events that has a lot of anticipation and then a catalyst to cool off for a while. ”
The merger is a highly anticipated event for Ethereum as the upgrade confirms the transition to a proof-of-stake (PoS) consensus mechanism. The event is expected to take place in the first or second quarter of 2022.
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Ethereum
Lyn Alden points to the catalyst that will increase the price of Ethereum in 2022
Macro-investment strategist Lyn Alden points to an overlooked factor that could catalyze Ethereum’s price spike in 2022.
In a new interview on the YouTube channel Investment Made Simple, Alden to explain why the amount of ETH contained in the Ethereum 2.0 staking contract serves as a bullish indicator.
“What I’m looking at is the Ethereum key contract. You started Beacon Chain about a year ago and are entering into a staking deal. Once you lock the coins they will stay there until something changes or until the merge is complete. One thing that I looked at is that Bitcoin is getting out of the exchanges pretty quickly, but Ethereum is getting out of the exchanges a little faster, in part because it goes on that contract.
Basically, an illiquid supply is forming and as long as it continues it should be a pretty strong bullish variable. I mean, there is more than 8 million ETH in that contract now. I think maybe almost 9 million. I haven’t tested in a couple of weeks, so overall it’s a bullish catalyst. ”
The Etherscan Distributed Ledger Explorer shows that investors have locked 8,793,458 ETH worth $ 35.43 billion in the smart contract. Those who deposit ETH into the smart contract are trying to become validators for the next iteration of Ethereum.
However, Lyn Alden is also concerned about the sell-off if this locked ETH opens.
“I think once the merger is complete and unlocked it could lead to a massive sell-off. This part of ETH is pretty profitable and a lot of investors will take profits, so I’m not sure about what happens after the merger. Ironically, it might be one of those who sell the news events that has a lot of anticipation and then a catalyst to cool off for a while. ”
The merger is a highly anticipated event for Ethereum as the upgrade confirms the transition to a proof-of-stake (PoS) consensus mechanism. The event is expected to take place in the first or second quarter of 2022.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
