The Bank of Italy simulated a scenario in a study where ETH prices plummeted to zero, pointing out that as a settlement infrastructure for stablecoins and tokenized assets, the native token's price risk could translate into infrastructure and operational risks. The study suggests that if ETH prices collapse, validator incentives would be damaged, some validators might exit, leading to a decrease in staked amounts, slower block production, and weakened resistance to attacks, which could further impact transaction timeliness and finality. (Cointelegraph)
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The Bank of Italy simulated a scenario in a study where ETH prices plummeted to zero, pointing out that as a settlement infrastructure for stablecoins and tokenized assets, the native token's price risk could translate into infrastructure and operational risks. The study suggests that if ETH prices collapse, validator incentives would be damaged, some validators might exit, leading to a decrease in staked amounts, slower block production, and weakened resistance to attacks, which could further impact transaction timeliness and finality. (Cointelegraph)