The Ethereum Merge, announced on Thursday, is a “landmark, historic moment” for the entire cryptocurrency market that will be a “major catalyst” driving prices higher in the long term, according to the CEO of a leading financial advisory and fintech.
The long-awaited so-called Merge of the world’s second-largest crypto, Ethereum, has just happened in a major overhaul and switch over to a new operating model that will use 99.9% less energy and will reduce supply of the crypto.
“This 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,” said deVere Group’s Nigel Green.
“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 99%.”
The deVere CEO and cryptocurrency advocate predicts that the “historic occurrence” will fuel prices across the market.
“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,” he affirms.
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, explained Green, adding that the institutional investors who had been sitting on the sidelines are now likely to move in.
“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,” said Green.
“Due to the significance of The Merge, we expect the developments to bolster prices across the wider crypto market to some degree.”
The deVere CEO has over the years spoken about the potential of Ethereum, saying it was “more useful than Bitcoin and having tech advantages over its better-known rival.”
He concluded that The Merge represents “a major boost, not just for Ethereum, but for blockchain technology itself.