The chief executive of financial advisory giant deVere Group says that Ethereum’s (ETH) recent transition to a proof-of-stake consensus mechanism should drive up the prices of crypto assets.
According to a new company blog post, deVere Group CEO Nigel Green says that ETH’s merge is a “landmark, historic moment” that will serve as a long-term catalyst for the digital assets industry.
[adinserter block="1"]“The years-in-the-making Merge, a network-wide, grand scale upgrade is here. This is [a] far-reaching overhaul of the most commercially important blockchain in the digital asset ecosystem is probably the most important, landmark event in crypto history, since the launch of Bitcoin.
It transforms Ethereum from a proof-of-work to a proof-of-stake mechanism, which lowers transaction costs, enables the network to process more transactions in a shorter amount of time, and will slash energy consumption by a massive 99%.”
According to Green, the merge’s reduction of energy consumption will entice institutional investors to put their capital into the nascent industry.
“Whilst some of the news has been priced-in already, let there be no mistake: this event will be a major catalyst driving prices higher in the long term.
The slashing of energy consumption will be the main reason as it will become significantly more appealing to institutional investors, who bring with them enormous capital, expertise and reputational pull.
Those institutional investors who have been sitting on the sidelines are now likely to move in.”
Green also notes that ETH’s transition will reduce its supply, cut costs, and speed up transactions, which will also lead to bolstered prices.
“Besides having a more positive climate impact, The Merge’s effect of reducing supply, cutting costs and speeding up transactions will also appeal to both individuals and institutions. Due to the significance of The Merge, we expect the developments to bolster prices across the wider crypto market to some degree.”
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