The co-founder and managing partner of crypto lender Nexo, Antony Trenchev, is saying that large institutions are now more likely to invest in Ethereum (ETH) after the crypto asset’s transition to a proof-of-stake consensus mechanism.
Trenchev says in a Bloomberg interview that Ethereum’s transition to a less energy-intensive transaction-verification mechanism makes it acceptable to institutional investors who are required to be aligned with the Environmental, Social and Governance (ESG) sustainable investing guidelines.
“With the merge and now the moving to the energy efficiency, we are now having this asset class be prime time-ready for large institutions that previously did not, via their mandates to invest in only ESG-compliant protocols and companies. You know now they have this entry point to crypto which is sizable.”
Nexo co-founder says that the reduction in Ethereum supply following the merge will play a bullish role over time.
“There is a case to be made that a large amount of the [Ethereum merge] hype is already priced in. So there might be a coming down a little bit.
But I think ultimately once people see the benefits play out though, the fact that we are now moving from essentially an inflationary type of asset, the circulating supply got increased 4.5% every year. Now, this gets slashed in half making this close to a deflationary asset as possible. Unlike the Fed and what they have been doing.
You know, I think this ultimately will play a very bullish role in the short, the mid and the long-term.”
According to Trenchev, Ethereum is unlikely to become bigger than Bitcoin (BTC) by market cap after the merge.
“[The merge] is the most significant thing to have happened to Ethereum. To your question about the flippening whether Ethereum will become bigger than Bitcoin, I do have my doubts…
Anyone who is writing off Bitcoin, I think that’s too soon.”
IDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/studiostoks