Ethereum hit a $46b valuation with 1 value accrual mechanism. Wait until there are three

Analysts say that Ethereum could rally exponentially higher, likely towards its previous all-time highs, once it gains two more value accrual mechanisms.

The first value accrual mechanism, which is ETH acting as a store of value, is arguably already in place as millions of coins have been locked as collateral in DeFi contracts.

The two other value accrual mechanisms, Ethereum Improvement Proposal 1559 and ETH 2.0 staking, have yet to arrive.

We've only got 1 out of 3 currently but ETH has a market cap of $46bil.

The first value accrual pillar on the chopping block is EIP-1559.

Assuming demand stays consistent, prices should start to surge higher as the amount of Ethereum in the market, the supply, has trouble meeting demand.

The second value accrual pillar in the works is the Ethereum 2.0 upgrade.

Along with improving the Ethereum user experience, ETH2 will also activate what is known as Proof of Stake.

Adam Cochran, a professor of information science at Conestoga College and a member of the DuckDuckGo team, has suggested that the introduction of Ethereum staking will create the "Biggest economic shift" the crypto industry has ever seen.

"Tying things together, EIP 1559 and staking [create a] symbiotic relationship where not only does increase usage drive value but the introduction of cash flows to a wider group of participants for securing the network creates a more effective long term value proposition [for ETH].".