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Ethereum Merge Will Fundamentally Change the Demand and Supply Dynamics of Ether, but no new capital is coming to raise ETH prices, Says Meltem Demirors.
Popular female cryptocurrency proponent and Chief Strategic Officer at CoinShares Meltem Demirors said in an interview with CNBC that Ethereum’s migration to a Proof-of-Stake (PoS) consensus mechanism would fundamentally change the supply and demand dynamics of the Ethereum protocol.
The CoinShares officer noted that one of the fundamental issues of Ethereum’s transition is that crypto traders are looking at the merge as an “upside catalyst for Ethereum while she looks at the transition as an “event in isolation.”
“I think one of the fundamental issues is people looking at the merge as an upside catalyst while I look at the merge as an isolated event,” she said.
The Ethereum protocol is anticipated to move to a PoS chain between September 15 and 19, making it more secure and less energy-intensive.
Demirors further explained that there are high speculations among the Ethereum community members that the merge will potentially increase the demand for the assets, thereby improving the price of the virtual currency. But, to her, not enough new capital will come to Ethereum to raise prices.
“While internally there’s a lot of enthusiasm within the crypto community around the merge… I don’t think there’s a lot of new capital coming in to buy Ethereum on these changed fundamentals.”
"With #Bitcoin we've seen a lot of buying on dips," says @Melt_Dem. "While internally there's a lot of enthusiasm within the #crypto community around the merge… I don't think there's a lot of new capital coming in to buy #Etherium on these changed fundamentals." pic.twitter.com/8KBiRHfT1f
— Squawk Box (@SquawkCNBC) August 22, 2022