Ethereum 2.0’s impact on ETH value hinges heavily on its slashed inflation rate. Under Proof of Work, ETH issuance was high, diluting value over time. PoS cuts this dramatically, and combined with EIP-1559’s fee burning, Ethereum could see net deflation. Staking further amplifies this by locking up supply, but the real kicker is scarcity—less new ETH plus burned fees equals a tighter supply. If demand holds (e.g., DeFi, NFTs), ETH’s value could soar as it mimics Bitcoin’s scarcity narrative.