Ethereum briefly reached $390 following a smooth dry run of the genesis block launch of ethereum 2.0.
The currency rose by more than $20 from $370 to $395 before seemingly settling currently at around $382.
Bitcoin rose as well to a current price of $11,500, but ethereum rose slightly more, suggesting it may be eth leading due to eth specific reasons especially as eth has gained on the ratio.
That reason is most likely the successful test run launch of the ethereum 2.0 genesis block in the Zinken temporary testnet.
As can be seen in the featured image, this dry run began finalizing blocks ad initio without any problems and continues to do so currently.
It was all successful therefore, and that means the ethereum 2.0 genesis block for phase zero is now fairly imminent.
Within a week or two the deposit contract will now probably be launched on mainnet. The genesis block then follows in about two weeks after the minimum requirement of 500,000 eth deposits and 16,000 validators is met.
Phase zero thus should begin in the first or second week of next month, with it opening a new dimension to ethereum from an investment perspective as circulating supply might practically reduce because some ethereans will be locking their assets.
Just how many remains to be seen, but you’d think probably 500,000 or thereabouts in the first day as if it does not finalize, then those 16,000 investors will be losing money due to being slashed.
Once a few days pass without problem however, then a lot more might be deposited, which might translate to a lot more being taken out from circulation practically speaking.
On the other hand, new supply will increase by 0.22% of the current supply, but in phase zero there can’t be any transfers, so that new supply can’t go to market presumably until eth1 is merged in eth2 sometime next year very optimistically speaking.
Once the genesis block is out, then full focus will turn to phase 1 which is storage sharding. That could potentially add capacity to second layer scaling proposals, with the merger then to follow in phase 1.5.
That could be the finished ethereum product, with full sharding still years away, but Proof of Stake is finally almost here after years of development.