In a recent study, Ethereum MergeIts transition to Proof of Stake was interpreted positively by one analyst for the price.
The main reason for this is that the return-hungry investors find the effect of the Merge event on the price positively.
Innovations in Ethereum with Merge Reflect on Price
Coming to Ethereum in December 2020 beaconWith the launch of the chain Ethereum staking had become possible. With Etherum staking, those who stake are able to earn around 4 percent income.
Ethereum The analyst, who speculates about the price, interprets this positively, as some of the transaction fees will go to the stakers together with Merge. With this income, the analyst thinks it will be more attractive to earn passive income by staking Ethereum.
ETH staked so far are locked and cannot be withdrawn immediately after Merge. However, it is thought that Ethereum’s long-awaited transition to Proof of Stake will provide confidence to investors who want to attract their ETH in the long run.
As Bitmex Research points out, the possibility of return with more Ethereum-based applications may also become attractive to investors.
Analyst, deflationary dynamics and energy consumption Ethereum MergeIt is of the opinion that the reduction in price will not affect the price much.
The Etherem Merge is expected to take place less than two weeks from now. In this regard, Ethan Buchman, the founder of Cosmos, interpreted this event as a great development for the industry.
