It remains to be seen what will happen in the markets after the transition from proof-of-work Proof-of-Work to proof-of-stake for Ethereum, which will take place a few days later. According to the report released by the bank, Merge is only the first of five planned upgrades for the Ethereum Blockchain, laying the groundwork for volatility. According to the report, it was stated that after the merger, there will be a serious decrease in energy consumption and this situation will attract the attention of institutional investors. In fact, a new door may be opened for investors whose token purchase is prohibited.
Analysts Alkesh Shah and Andrew Moss said:
“The ability to offer a higher quality return as a validator or through a staking service rather than risking ETH and lending apps can also accelerate adoption by institutions.”
Bank of America states that delivering a higher quality throughput is instrumental for the decentralized applications (Dapp) Web3 ecosystem. Dapp is a technology that uses Blockchain technology developed to protect users' data from various organizations.
Ethereum community eagerly awaits Merge update
The biggest event in Ethereum history is less than 3 days away. While this event, which has the potential to affect the crypto market in general, is eagerly awaited, it also brings some concerns. The source of concern is the possibility of a problem during the update phase. Because while the entire market is locked in this event, a possible problem may trigger a market decline with panic selling.
However, due to the smooth completion of the test phases in recent weeks, the developers share the view that there will be no problems in the Merge phase. Another perception in the market is that even if the update is successful after the purchase of the expectation, the event may be sold to some extent. As a result, this week's events are likely to increase market volatility.