Former BitMEX CEO predicts Ethereum to rise to $3000 following the network’s upgrade

Arthur Hayes is confident that reducing the amount of ETH will be a strong boost to the price of the asset

10.09.2022 - 11:15

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What’s new? The former head of the BitMEX crypto exchange Arthur Hayes allowed the possibility of Ethereum’s value to actively rise to the $3000 level after the upcoming upgrade that will see the network switch to the Proof-of-Stake (PoS) consensus algorithm. Hayes said this in an interview with Bankless.

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What else does Hayes say? After the upgrade, ETH’s daily issuance rate will drop from about 13 000 to 1600 coins. Hayes is confident that reducing the amount of ETH will be a strong boost to the price of the asset. In his opinion, the second factor influencing the increase in demand for Ethereum will be the development of the DeFi segment.

He added that the upgrade could have provided an even stronger boost to ETH’s growth had it not been for the collapse of the Terra ecosystem and the bankruptcy of cryptocurrency hedge fund Three Arrows Capital a few weeks before its announcement.

What is known about The Merge? Due to the algorithm change from PoW to PoS, the way coins are earned on the network will change from mining to staking. It may also result in a split into two networks, one of which will continue to run on PoW. In August, the developers published a document refuting misconceptions related to the upcoming upgrade.

As of September 10, 11:00 UTC, ETH is trading at $1726, having gained 1,49% overnight, according to Binance.

On September 6, Ethereum developers activated the Bellatrix upgrade, which was the last step before the transition of the mainnet to PoS. However, after the launch, technical problems were recorded on the network, which may have been caused by the fact that not all operators have updated the software. Thus, the blockchain’s missed block rate increased by 1700%

Read about the risks of Ethereum’s transition to PoS in GetBlock Magazine’s article.

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