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Ethereum’s hidden ‘death spiral’ mechanic could freeze $800 billion in assets regardless of their safety rating

  • Oluwapelumi Adejumo--CryptoSlate
  • published date: 2026-01-12 22:45:47 UTC

An Ethereum price collapse could break the blockchain’s ability to settle transactions and freeze over $800 billion in assets, a Bank of Italy research paper warns. The paper, authored by Claudia Biancotti of the central bank’s Directorate General for Informa…

An Ethereum price collapse could break the blockchains ability to settle transactions and freeze over $800 billion in assets, a Bank of Italy research paper warns. The paper, authored by Claudia Bia… [+9106 chars]