Bank of America said that some users who are banned from buying altcoins/tokens are waiting for an Ethereum merge. According to the bank, the upgrade could multiply the demand for Ethereum.
Merge will lead to corporate interest, according to BoA
It is not clear what will happen in the markets after the Ethereum merge, which will take place a few days later. According to the bank’s report, the merge is just the first of Ethereum’s next five rises and lays the groundwork for volatility. In the report, the bank states that there will be a significant decrease in energy consumption after the merger. He also adds that institutional investors will take this development into account. In fact, the Ethereum merge will be a new method for investors with limited token purchase. On this matter, analysts Alkesh Shah and Andrew Moss predict the merger will increase corporate appetite:
Lending practices and the ability to deliver a higher quality return as a validator or through a staking service rather than risking ETH can also accelerate institutional adoption.
According to Bank of America, providing higher quality yields is crucial to the Dapp and Web3 ecosystem. Dapp is the technology that protects users’ data from various organizations using Blockchain technology. Represents applications where developers distribute their applications to a network rather than a hub.
Bank’s Web3 and altcoin market analysis
Bank of America says a higher quality yield has implications for the Web3 ecosystem. He also said that a decentralized insurance protocol like Nexus Mutual must provide a return on its reserves to be a viable alternative to traditional insurance companies. Insurance companies normally invest their reserves in corporate and government debt. However, it is difficult to find instruments with similar risk and reward characteristics in the cryptocurrency ecosystem. Staking on Ethereum is the closest alternative.
Web3 games and metaverse projects raise $748M in August (Report)
Companies like Temasek, Xterio, and others have dedicated nearly $750 million to blockchain games and metaverse start-ups since the beginning of August. Web3-based games and metaverse projects have raised $748 million since August 1, according to DappRadar’s report. Last month, an average of 847,000 unique active wallets (UAWs) per day interacted with Blockchain games.
Along with this, the report reported that unique active wallets (UAWs) fell 7% in the second quarter compared to the previous quarter. This suggests that individuals continue to interact with decentralized applications at roughly the same rate as before the Terra collapse. Skirmantas Januskas, CEO of DappRadar, comments on the data:
We think the blockchain game will play a key role in the next two or three years, bringing at least 100 million new users to crypto for the simple reason, they connect NFTs and DeFi. All three in one, you will see something really new and exciting with Blockchain games, NFTs and DeFi.
