Italian Central Bank Simulates Ethereum Zeroing Risk: Some Validators May Rationally Exit

Odaily News The Bank of Italy has simulated an extreme scenario where the price of Ether drops to zero, aiming to illustrate how market risks associated with Ethereum's native token can translate into infrastructure and financial stability risks. In a new research paper titled "What if the price of Ethereum went to zero? How crypto market risk can morph into infrastructure risk," the bank's economist Claudia Biancotti explores how an extreme shock to Ethereum's price could impact the cryptocurrency market. She posits that a portion of validators might rationally exit, which would slow down block production and weaken Ethereum's ability to resist certain attacks and ensure timely final settlement of transactions. (Cointelegraph)