Former DeFi Researcher Reveals Ethereum’s Future Following ‘The Merge’.
Ethereum’s “The Merge” is one of the most anticipated events in the cryptocurrency ecosystem. Enthusiasts, both Ethereum proponents and non-proponents, await this critical event while speculating on the Ethereum network’s implications. A former DeFi researcher from Celsius has provided insight into what to anticipate.
Vivek Raman, a researcher at Defi, outlined a few things the crypto community might anticipate on the Ethereum blockchain after the integration. Among them is that Ethereum layer-1 network costs will not be cut.
“Costs are a consequence of blockspace demand, NOT consensus method,” he said, emphasising that even if The Merge will see the Ethereum blockchain switch from a PoW to a PoS consensus mechanism, ETH layer-1 fees would stay the same.
Raman said that the cryptocurrency community should not anticipate structural sell pressure from ETH supply within six to twelve months after The Merge. This is because ETH rewards cannot be taken until the network enables withdrawals, which will not occur immediately.
He also claimed that after The Merge, the inflation rate for the ETH asset is projected to reduce to 0.22 percent from the current rate of 4.3%. Raman urged the crypto community to anticipate increased security on the Ethereum blockchain after the integration since ETH under the PoS method would be more expensive to attack.
Raman saw a 50 percent improvement in ETH staking yield and superior durability on the Ethereum network compared to the Bitcoin blockchain.
Crypto Winter persists
The Merge is anticipated to debut in August of this year. The crypto community’s anticipation of enhancements has made the event the most anticipated in the field.
The Crypto Winter has not been kind to ETH, as the asset has been reaching record lows for some time. Market mood has a significant effect on the price fluctuations of crypto assets. It is not unreasonable to anticipate a favourable reaction from the price of ETH when The Merge is launched with its various perks.
Recently, on 29 June, the Ethereum team released the Gray Glacier network update, which modified the settings of the Ice Age/Difficulty Bomb by delaying it by 700,000 blocks to increase mining difficulty. As of press time, ETH is trading at $1,526, an 11 percent rise over the previous week.