- Binance says ETH 2.0 would help pull Ethereum out of its slump
- Says Bitcoin would cool down after rising over $16,000
According to the report, the rise in the price of Bitcoin had a hand in bursting the DeFi bubble. This played a role in the reduced cost of crypto assets.
Crypto assets like ETH, XRP, BCH, LTC, and LINK were able to record some level of gains in October. However, they were unable to break new heights because the attention of traders shifted to Bitcoin. This was when Bitcoin price started rising.
Before this period, altcoins were the principal driver of the crypto market.
From September to now, gains made on DeFi tokens had dropped by 70-90%. Also, Bitcoin price rise had no effect on the prices of those tokens.
Binance is predicting that if Bitcoin should go beyond $16,000, then it is expecting it to have some lull in its price growth. They cited the consolidation period the coin had when it was between $10,000 to $12,000.
“Ethereum 2.0 will be a game changer for altcoins” — Binance report
According to Binance report, the future and prospects of the altcoins industry could be dependent on the launch of ETH 2.0.
The report noted that the new development would be of positive impact on ETH. This development will improve the the scalability of ETH and also make the network more secured.
Not only that, ETH 2.0 would give investors an opportunity to stake their Ether for rewards. In the long run, this would reduce the supply of ETH tokens but would increase the demand for the token.
New investors can be expected to come into the picture when they realise that they can make steady gains trading the token.
When all of this is taken into consideration, it is apparent that ETH 2.0 would be able to play a roll in pulling the ETH token out of it recent drop in price.