As the launching of the long-awaited Ethereum upgrade, Merge, approaches, there’s a spike in institutional investment. Big-shot investors are paying more attention to Ethereum products.
While there’s no time frame for the Merge yet, many developers believe it will be available by September 19. As the details of the final phase are released, many Ethereum derivatives will be receiving more investment deals.
James Butterfill, the Head of Research of CoinShares, stated that investors’ sentiment for Ethereum products is changing. Butterfill stated this in the Digital Asset Fund Flows Weekly Report. Merge is the reason for investors’ sudden enthusiasm and desire, according to Butterfill.
This report indicates that most institutional investors invest preferentially in Ethereum products. Because they believe that the Ethereum network has great potential, they push for additional funds.
According to them, the second-largest cryptocurrency in the world would see a greater positive and more profitable effect if it was upgraded. The report found that Ethereum saw an increase in inflows of $16 million due to this change in sentiment. The result was a pattern of seven weeks with inflows totaling $159 million.
So, Butterfill reports that the change in the investors’ sentiment signifies more clarity with the Merge’s timing. The Ethereum network would see the transition it desired from Proof-of-Work, (PoW), to Proof-of-Stake.
The Ethereum blockchain uses a PoW consensus to validate transactions and protect its network.
This means that the mining process will consume more electricity or energy. The Merge will transform the operation of the blockchain. It would first use the energy-efficient staking method that involves the staking ETH tokens.
It’s been a difficult plan for Ethereum merger
For several months the launch of the switch has been postponed. Ethereum supporters are enjoying a fun season as they approach the launch date. It has been a bumpy ride that included changes to roadmaps and ambiguous terminology. The Merge was also opposed.
Vitalik Buterin was the founder of the PoW blockchain and he continued to announce all possible forks in the process. Any PoW Blockchain that might want to change the future will find this a great advantage.
However, some prominent personalities in the industry don’t mind a hard fork. Justin Sun, Tron’s founder, has pledged to list both ETHs as well as ETHw tokens at his Poloniex Exchange. BitMEX also supported any ETHPoW Fork.
It will connect the Ethereum mainnet with the Ethereum 2.0 Beacon Chain, enabling a seamless transition to PoS. Hence, Ethereum 2.0 would receive increased efficiency and security in its execution of transactions.’
The network’s energy efficiency would lead to a significant reduction in carbon emissions, which could be as high as 99%. This is the biggest criticism against Ethereum’s PoW network.
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