Why did the Ethereum 2.0 beacon chain mainnet officially launch but the price of ETH dropped sharply?

特邀专栏作者

2020-12-02 10:18 (UTC+8)

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Even with the successful launch of the long-awaited ETH 2.0 mainnet, the price of ETH has fallen sharply along with Bitcoin.

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Even with the successful launch of the long-awaited ETH 2.0 mainnet, the price of ETH has fallen sharply along with Bitcoin.

Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: JOSEPH YOUNG, reprinted with authorization by Odaily.

Editor's Note: This article comes fromETHCointelegraph Chinese (ID: CointelegraphChina)BTCCointelegraph Chinese (ID: CointelegraphChina)

, Author: JOSEPH YOUNG, reprinted with authorization by Odaily.In a recent pullback, Ethereum’s native cryptocurrency Ether () is cheaper than Bitcoin (

) dropped even more.After hitting a new all-time high on Coinbase,. During the same period, Ethereum corrected more than 11% as the market pulled back.

ETH 2.0 Beacon Chain Launched on Mainnet

, which marks a major milestone for Ethereum.

image description

ETH/USDT 4-hour chart. Source: TradingView.com

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What caused the sharp correction in Ethereum?

ETH 2.0 is a key network upgrade for the Ethereum blockchain that improves its scalability and transaction processing capabilities. Before the upgrade, the network was able to handle about 15 transactions per second.

After the upgrade, Ethereum will be able to scale to handle thousands of transactions per second, possibly even more in the long run with sharding.

A correction in the price of Ethereum after the ETH 2.0 upgrade is to be expected as the market tends to buy rumors and sell news. For example, when the ETH 2.0 upgrade was confirmed in late November, the Ethereum price also dropped from around $620.explain：

After the launch of the beacon chain, industry executives are also very optimistic about Ethereum’s medium-to-long-term growth trajectory. This could add to the overall positive market sentiment surrounding ETH.

Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, described ETH 2.0 and proof-of-stake as a landmark upgrade. he

explain

“The release of the ETH 2.0 Beacon Chain is a feature of the emerging open source ethos that first attracted so many people to Ethereum. Now, more than 27,000 validators from around the world are participating in the new ETH 2.0 consensus model. Proof of Stake is A major upgrade to the cryptoeconomic incentives that have made Ethereum an automated, objective foundation for trust. Together, we are deepening our commitment to building the largest decentralized web."