Among the hesitations of the cryptocurrency market, the leading altcoin Ethereum has successfully completed its Merge upgrade. So is that all over? Changpeng Zhao (CZ), CEO of Binance, the world’s largest crypto exchange, shared his views on this issue.
Ethereum Merge successfully launched
cryptocoin.com As you follow, Merge, the biggest upgrade in Ethereum’s history, went smoothly. Thus, years of testing and labor of the project developers yielded results. Ethereum has since become a Proof-of-Stake (PoS) Blockchain. Merge laid the groundwork for Ethereum to be environmentally friendly, abandoning the Proof-of-Work (PoW) consensus, which consumes more energy than PoS. Experts certainly see this as a win for the crypto space.
Binance CEO: Traders are likely to be disappointed!
However, all is not rosy and it is still early to celebrate. Major attendees are already talking quite loudly about the negative effects of Merge. Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange, warns investors. To that extent, he notes that Ethereum’s transition to PoS is likely to disappoint them in some way.
Binance CEO Changpeng Zhao said in an interview with CNBC that traders who expect Merge to have a quick impact on ETH will be disappointed. Because traders are under the misconception that gas prices will drop significantly after Merge. CZ also refers to this issue and makes the following statement:
Some have extremely high short-term goals for integration. They believe Ethereum gas fees will drop instantly from $10 per transaction to $0.02 per transaction. The probability of this happening is very low. It takes a long time for wages to drop to this extent.
“Additional improvements to ETH in the future are important”
Also, the Ethereum upgrade will happen in stages, and Merge is just one of them. However, Merge is a very positive development that is moving in the right direction and showcases significant innovations, whether it comes to life months or years later. On the other hand, it is a fact that Ethereum’s gas costs will not decrease immediately after Merge.
Meanwhile, Changpeng Zhao also talks about additional improvements the team will make to ETH in the future. In line with this, he claims that Ethereum will come closer to the initially expected benefits from Merge. In this context, CZ makes the following assessment:
We expect current high wages to decline once other developments such as sharding come into play. This is a good development for the industry.
