Fed meeting, Ethereum and Cardano upgrades set key dates to kickstart September. Now, 2 professional analysts say that after the historic rise, institutional money will be in this altcoin project.
Institutional money will revolve around this altcoin project
According to an expert from Consensys, Ethereum (ETH) could “inevitably” become a store of value for smart money after the merge upgrade. Lex Sokolin, chief economist of decentralized protocols at software company ConsenSys, says the rise will be highly effective. Sokolin said at his CoinDesk TV engagement Monday:
A sizable portion of people will stake their ETH to secure the protocol. In a sense, it will inevitably turn at least some ETH into a store of value within the network.
The Ethereum network will be busy completing the merge upgrade until September 15. As a result of this, Ethereum will now move from mining to a PoS system. In part of the publication, Sokolin emphasizes that Ethereum will now be a less energy-consuming Blockchain.
Expert says Ethereum will attract more institutional money
Later, focusing on the DAO domain, Sokolin said that the use of Ethereum as collateral in DeFi demonstrates that “those who definitely support ETH as a store of value, ultra-solid coin asset.” Sokolin added that ETH is not only “used to strengthen the protocol,” but is often used as “a unit of account for all kinds of commodities and NFT within Web3.”
Sokolin predicts that in the short term, the growth rate of ETH will be higher than Bitcoin. As a reason, he stated the following in part of the broadcast:
What I would be excited about about Bitcoin would be to see more Bitcoins included in Web 3, possibly via bridging or rapping. And if it could be used as collateral inside Web 3, that would be even more powerful.
After Merge, Lex Sokolin is not the only expert who is in high demand on the Ethereum network. Most experts expect more from Ethereum after the rise.
What does PoS Ethereum mean the most to institutional investors?
Analyst of Youtube channel InvestAnswers says that Ethereum staking investors will generate returns of 10-15% during the year. According to the analyst, ETH’s yield will make it an attractive alternative to bonds for investors with deep pockets:
An attractive bond alternative for institutional investors. For the first time, we’ve been able to make a lot of corporate money, people who have historically invested in things like gold and bonds could come into space, and that’s going to be a huge influx of money.
The InvestAnswers server also says that Ethereum’s DeFi share, the low regulatory risk it has, and the eco-friendliness of its proof-of-stake consensus mechanism are other reasons why it has the second-largest crypto-asset in the market. According to the analyst:
Ethereum also powers DeFi and there is no regulatory risk, as we’ve heard multiple times from Gary Gensler last week. Also ESG [Çevresel, Sosyal ve Yönetişim] There is no FUD involved because switching to PoS does not burn energy. And finally, reduced ETH issuance and increased burns will systematically supply Ethereum.
cryptocoin.comAs you follow, Ethereum is trading at $1,600, down 8% in the last 24 hours.
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