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Chainalysis allowed the discrepancy between Ethereum prices and bitcoin after The Merge
The price of Ethereum can show the dynamics independent of other digital assets after the merger, since the staying will make the second in capitalization of cryptocurrency similar to bonds or exchange products. This is stated in the study of Chainalysis.
16/ Read More ABOUT THEN-ChaIN METRICS To GET MORE Insights Into the Merge’s Potential Impact ON CRYPTO Markets. https: // t.Co/9uuvx8kn6T
– Chainalysis (@chainalysis) September 7, 2022
The coming of September 15–16 will lead to an active increase in interest from institutional investors. They will be attracted by the expected profitability of 10-15% per annum. The indicator will exceed the return on financial instruments such as bonds and raw materials.
According to Chainalysis, the number of Ethereum institutional investors (with more than $ 1 million in the equivalent of ETH) is “growing steadily” – from less than 200 in January 2021 to ~ 1100 by August of this year.
The growth of the indicator after The Merge will confirm the hypothesis at a faster pace that the institutions “really consider the Steering of the second in capitalization of cryptocurrency as a good profit strategy”.
Experts also drew attention to the discrepancy between the price of Ethereum and its synthetic analogues, which release the value blocked in the smart contract.
“Shanghai update (6–12 months after The Merge) […] will allow the asset, which will ensure greater liquidity for players and make stakeing more attractive”, – The report says.
Experts mentioned the rejection of non -ecological mining with a decrease in energy consumption by more than 99%. This will increase the comfort of compliance with investors ESG standards.
Recall, on September 6, Ethereum developers activated Bellatrix update. The upgrade is the last step before the migration of the main network for the Proof-OF-Stake (POS) algorithm.
Earlier, Glassnode analysts came to the conclusion that after the activation of The Merge, Ethereum cryptocurrency is most likely to be deflation.
In April, the former CEO and co -founder of BitMEX exchange, Arthur Hayes, predicted the growth of Ethereum above $ 10,000 by the end of 2022. He also suggested that the asset will be perceived as a commodity bond.
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