Ethereum Merge May Spur More Institutional Interest

Ethereum will likely transition from PoW to PoS this week — DAS panelists discuss its implications post Merge

article-image

Source: DALL·E

share

key takeaways

  • Despite macroeconomic conditions, traditional institutions are not abandoning Ethereum
  • Less energy consumption will likely get institutions excited about Ethereum

The Ethereum Merge is only days away from moving from proof-of-work (PoW) to proof-of-stake (PoS) which will have drastic implications for the future of the blockchain.

Ethereum has evolved to become a technology that developers want to build on, Brian Mosoff, CEO of Ether Capital, said at Digital Asset Summit 2022.

“There’s going to be a spectrum of activities,” Mosoff said. “There’s going to be crypto-native activities such as DeFi, NFTs and metaverse, and then you’re going to have traditional finance — and the next five years are exciting because you’re going to see those worlds converge instead of acting in isolation from one another.”

Even in its current state, as a PoW blockchain, Ethereum has an array of layer-2s that are building products on top of the blockchain, said Kain Warwick, founder of Synthetix, a derivatives liquidity protocol.

“Ethereum has shifted from a monolithic computational layer to a settlement layer,” Warwick said. “The shift to proof-of-stake is going to make that much more efficient.”

Players in traditional finance will be expected to take a greater interest in Ethereum post-Merge. Mosoff said that will likely be driven by the fact that Ethereum will consume much less energy post-Merge. 

“A lot of funds and institutional money has an ESG [environmental, social and governance] angle,” Mosoff said at the conference. “As Ethereum becomes 99% more energy efficient…and there are ways custody has evolved and staking products will be appropriate for those institutions…you’re going to see a lot of institutions get excited about Ethereum specifically.”

Introducing a risk-free rate post-Merge will also appeal to institutions, said Anthony DeMartino, the US CEO of Matrixport.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Solana Q2 Update

Research

While most alternative Layer 1 networks, have seen lackluster usage since the market downturn, Solana has continued to show significant potential throughout 2023.

/

article-image

Scattershot securities labels aimed at major cryptocurrencies sent prices lower. Bitcoin, however, remains unfazed.

article-image

The crypto industry must be brought to heel to protect our markets

article-image

Curve founder Michael Egorov misappropriated trade secrets by falsely promising the plaintiffs a stake in Curve, three venture capital firms claim

article-image

Moody’s changed Coinbase’s outlook because of uncertainty about how the SEC charges will affect the business and money flow

article-image

The exchange warned customers to withdraw USD funds by June 13

article-image

The launch of ‘The Amory’ will provide gamers the chance to earn rewards through borrowed assets