With the launch of the long-awaited Ethereum upgrade, Merge, approaching, there is a surge in institutional investment. Ethereum products are getting more attention from big investors.
Although there is no set period for the integration, most developers expect to upgrade by September 19th. However, most Ethereum derivatives are getting more investment deals as the details of the final stage are revealed.
James Butterfell, Head of Research at CoinShares, stated that investor sentiment towards Ethereum products is changing. Butterfill made this known in the latest edition of the Digital Asset Fund Flows Weekly Report. He pointed out that the sudden sharpness and desire of investors is due to the merger approach.
according to ReportMost institutional investors make preferential investments in Ethereum products. Hence they pay more money because they believe in the great potential of the Ethereum network.
For them, the promotion of the second largest cryptocurrency in the world would create a more positive and profitable impact. Given the change in sentiment, the report indicated that Ethereum has seen additional inflows of around $16 million. This resulted in a seven-week pattern of inflows that accumulated up to $159 million.
Therefore, Butterfill stated that the change in investor sentiment indicates more clarity in the timing of the merger. This will result in the required transition for the Ethereum network as it transitions from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
The Ethereum blockchain works with the PoW consensus mechanism to validate transactions and the security of its network.
Unfortunately, this involves using a mining process that consumes more energy or electricity. But the merger would transform the blockchain’s operating system. First, you will start using the most energy efficient staking process which requires staking of ETH tokens.
The plan to integrate Ethereum was difficult
The transformation plan has been delayed for several months. But with the launch date approaching, Ethereum proponents are having a season full of fun. The journey took several challenging routes including changes in roadmaps, ambiguous terminology, and finally recent opposition to the merger.
On the part of its founder, Vitalik Buterin, he continued to announce all possible defections to the transition. This action is an excellent advantage for any PoW blockchain that may choose to change in the future.
However, some of the industry’s leading figures don’t mind a difficult split. For example, Justin Sun, founder of Tron, has pledged to list the ETH and ETHw tokens on his Poloniex exchange. Also, BitMEX revealed its support for any ETHPoW fork.
Once that finally happens, it will connect the Ethereum mainnet and the Ethereum 2.0 beacon chain for a full transition to PoS. Hence, Ethereum 2.0 will get increased efficiency and security in its execution of transactions.
Also, there will be a significant reduction in carbon emissions to the environment by over 99% as the grid becomes energy efficient. This was one of the main criticisms against Ethereum as a PoW network.
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