Back to the list

The Raise in Institutional Investments in Ethereum

09 August 2022 13:00, UTC
Odero Kester

Ethereum had US $16 million inflows and is enjoying nearly 7-week inflows totaling US$ 159 million. The improvement in investor confidence results from more information about when Ethereum will switch from Proof-of-Work to Proof-of-Stake.

Focusing on the merge, the Ethereum Mainnet will combine with the Ethereum 2.0 Beacon Chain, completing the move from a PoW to a PoS consensus protocol. Ethereum is projected to become safer, energy efficient, and ecologically friendly due to the PoS consensus process over the next coming weeks. The migration to PoS has been a much-anticipated event for the Ethereum community. The process will be gradual, with staking becoming available in phases. Initially, only a small group of people will be able to stake their ETH and help secure the network.

As the migration progresses, more and more people will be able to participate in staking. Eventually, anyone who owns ETH can stake their tokens and earn rewards for participating in the network. Additionally, the migration to PoS will make Ethereum more decentralized, as anyone who owns ETH will be able to participate in staking. The move to PoS is a positive development for Ethereum. It will make the network more secure and energy efficient. It represents a shift in power from miners to stakes. This could profoundly impact the Ethereum ecosystem.

The Prater and Goerli testnet merging is also slated for this week, which will be the final practice run before the main net Merge in less than six weeks. The Prater testnet was launched early September to help finalize the merge process before going live on the leading network. Investors' inflows into Ethereum is a vote of confidence that the PoS switchover will go smoothly and as planned. It may also reflect a belief by some that Ethereum will become the preeminent intelligent contract platform.

The bulls are getting ready

Glassnode, a blockchain analytics business, said that the much-anticipated Merge has crypto traders preparing to buy the rumor and sell the news. The company claims that derivatives traders make straight bets on Ethereum, notably on the impending Merge on September 19. On August 8, the analytics firm stated in a newsletter headlined Gambling on the Merge that the ETH options and futures market is backward, a scenario in which the prevailing price of an asset is greater than the prices circulating in the futures market.

The business also stated that both options and futures markets are in reverse after September, implying that traders anticipate the Merging to be a belief in the rumor, sell the news event, and have positioned it appropriately.

Ethereum options data allow professional merchants to delve deeply into ETH's Merge

Nonetheless, the judgment is still out on how the Merge will ultimately affect Ethereum's value. In a recent interview, Ethereum co-founder Vitalik Buterin expressed optimism about the long-term prospects of ETH, stating that the narrative would likely remain positive post-Merge. This side hasn't yet been factored in.

The founder said that he expects morale to skyrocket once the merger is completed. He expects the merger to be unpriced, which he means in financial terms and psychological and narrative dimensions. In story words, he believes it will not be priced in until after it occurs. Ethereum's value proposition as an innovative contract platform is straightforward, and Buterin's vision for ETH 2.0 is compelling. We believe Ethereum can capture more developer mindshare and become the preeminent intelligent contract platform. According to CoinGecko statistics, the price of Ethereum is $1,771.51 at the time of this writing, up 10.16 percent in the past seven days.