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.
[adinserter block="1"]“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.”
I
Follow us on X, Facebook and TelegramFeatured Image: Shutterstock/studiostoks