The Bank of Italy simulates the risk of Ethereum going to zero, and some validators may rationally exit

According to Cointelegraph, the Bank of Italy simulated an extreme scenario where the price of Ether drops to zero, to demonstrate how the market risks of Ethereum's native token could translate into infrastructure and financial stability risks.

In a new research paper titled "What If the Price of Ethereum Drops to Zero? How Cryptocurrency Market Risks Evolve into Infrastructure Risks," the bank's economist Claudia Biancotti explores how extreme shocks to the price of Ethereum could impact the cryptocurrency market. She believes that a portion of validators may rationally exit to slow down block production, weakening Ethereum's ability to withstand certain attacks and ensure timely final settlement of transactions.