Galaxy Digital CEO Mike Novogratz praised the second largest cryptocurrency Ethereum (ETH) after the merge update. Novogratz explained that he “deeply respects, awes” Ethereum. Here are the details…
Post-merger Ethereum praise from Mike Novogratz
cryptocoin.com As we have also reported, Merge took place yesterday morning. Thus, a new era began for Ethereum, the second largest cryptocurrency. Mike Novogratz claims that Ethereum’s big upgrade is “proof” that a community can solve a giant problem. The highly anticipated event received wide mainstream coverage. Top names in the cryptocurrency industry began praising Ethereum after the implementation of the merge.
Congrats to @VitalikButerin and the whole $ETH team. It’s a testament that a giant problem can get solved by a community. I am in awe really.
— Mike Novogratz (@novogratz) September 15, 2022
Cardano inventor Charles Hoskinson described the blockchain’s transition to proof-of-stake (PoS) as a “victory” for the entire cryptocurrency space. Even Colorado Governor Jared Polls congratulated Ethereum co-founder Vitalik Buterin. In August, Novogratz said that the enthusiasm surrounding Merge will continue to attract money to Ethereum. Novogratz also predicts that Bitcoin and Ethereum will recover slowly due to the US Federal Reserve’s (FED) hawkish monetary policy. Last year, however, the billionaire said that ETH could “become the largest cryptocurrency,” surpassing Bitcoin.
Details of Ethereum Merge and the latest in cryptocurrency price
Ethereum’s transition from the old PoW consensus mechanism to PoS was released on Thursday after nearly 7 years of work and development. Following Merge, the Ethereum chain showed improved block stability. Ethereum founder Vitalik Buterin also highlighted that one of crypto’s largest blockchains effectively optimizes its energy needs by 99 percent. Meanwhile, ETH is working on a hard fork that continues to use the PoW consensus mechanism.
To become a full validator of the Ethereum Blockchain, stakers must commit 32 ETH to do so. A common misconception was that these stakers could get their staked ETH back after the Merge was completed. However, to ensure network stability, validators will only be able to withdraw their staked ETH after the Shanghai upgrade, which is scheduled to take place in the next 12 months, takes place.
With the transition to PoS, Ethereum will require 99.95 percent less energy to create. This could pave the way for environmentally conscious investors to finally jump on the Ethereum wagon. Ultimately, it was Bitcoin’s (BTC) high carbon footprint that caused Tesla to abandon its offer of the app as a means of payment. However, the move to PoS comes with the downside of additional centralization. Currently, Lido owns about 31 percent of the total stake pool, while Coinbase owns about 15 percent. Finally, at the time of writing, ETH is down 7.5 percent to $1,471.
