In a Bankless interview on Wednesday, the co-founder of BitMEX highlighted the anticipated Proof-of-Stake upgrade for the number two blockchain, called “the Merge,” admitting that he was long on ETH owing to the huge impact the update is expected to bring to the network.
ETH’s post-Merge issuance decrease, which Hayes claims is “more potent” than the present macro situation, which has sent crypto and other asset classes into a months-long downturn owing to the Federal Reserve rising interest rates to combat inflation, might act as a catalyst for upward price momentum, he added.
After the Merge, the daily ETH emission rate of Ethereum is expected to decrease from around 13,000 ETH to 1,600 ETH. Hayes argues that this significant drop and the market’s appetite to utilize Ethereum should help ETH climb in the future. Hayes said that Ethereum is presently DeFi’s primary hub and that it is still being used despite its low price. “Unless you’re telling me that DeFi use goes down a cliff with issuance as well, you’re arguing that demand exceeds supply, therefore I believe the price must increase,” he added.
Ryan, bankless co-host Hayes responded positively to Sean Adams’ inquiry as to if he saw the deal as a “no-brainer” owing to the upcoming fundamental transformation Ethereum would undergo. Hayes is largely considered one of the top crypto writers and traders, and his optimistic views on ETH have gained fame this year.
Multiple times on his Medium blog, he has made bold price forecasts for the asset, speculating that it may reach $10,000 in 2022. Hayes said on Bankless that he had purchased ETH call options with a $3,000 strike price and that he believed $3,000 was a credible 2022 objective. Everyone is trading this strike… Let’s say $3,000 towards the end of the year,” he suggested.