The Italian Central Bank has conducted a study simulating a scenario where Ethereum's (ETH) price plummets to zero. The research highlights the potential risks to Ethereum's role as a settlement infrastructure for stablecoins and tokenized assets if its native token's price collapses. The study suggests that a crash in ETH price could undermine validator incentives, leading to some validators exiting the network. This could result in reduced staking, slower block production, weakened attack resistance, and ultimately impact transaction timeliness and finality.
Italian Central Bank Simulates Ethereum Price Crash to Zero
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