- Ethereum lead developer Preston Van Loon believes that the merger will lead to widespread adoption of the altcoin.
- Ethereum aims to become the global settlement layer, and with the transition to proof-of-stake, developers expect ETH to become the cryptocurrency of choice.
- Analysts believe that Ethereum is on track to reach its $2,000 target as the altcoin recovers from a downturn.
Ethereum will soon collapse in the next few days, so holders expect a huge impact on the altcoin blockchain. Developer Preston Van Loon confirmed that changing the Ethereum consensus mechanism could lead to an increase in the price of ETH.
Also Read: DeFi Crash Alert: Here’s How To Protect Your Funds From Ethereum Merge Failure
The upcoming Ethereum merger is a game-changer for ETH
The Ethereum merger is a key event that ETH holders and the crypto community are looking forward to. The transition from Proof-of-Work to Proof-of-Stake is expected to change the way new ether is created and reduce power consumption by 99.95%.
In the days leading up to the merger, there has been a drop in capital inflows into Ethereum. Despite the lower total locked value and reduced capital inflows from investors and institutions, analysts remain bullish on Ethereum.
Preston Van Loon, developer of the Ethereum protocol at Prysmatic Labs, told CoinDesk TV that the goal for ETH is to become the “global level of settlement” and this will become a possibility after the merger. The move to PoS could increase the adoption of Ethereum. In the long term, network security and transaction costs may decrease, making Ethereum the blockchain of choice for developers.
The Bellatrix update for Ethereum, the network’s last hard fork before the merger, was implemented on Tuesday. Van Loon explained,
This indicates that the Ethereum proof-of-work side is now ready to merge with the proof-of-stake side. We see that [environmental impact of PoW] as an obstacle to global acceptance.
Van Loon argues that the beauty of Proof-of-Stake is that something is at stake, which is why I say I’m being fair and not relying on this working mechanism. As the power consumption of Ethereum will be reduced, institutions will use the ETH blockchain.
Analysts have set a target for Ethereum at $2,000.
Analysts showed an optimistic outlook for Ethereum and set a $2,000 target for ETH. The altcoin has started recovering from the recent crisis and hit $1,765. Tony M., a leading crypto analyst, believes ETH is on track to recover to $2,000.
ETH-USDT price chart