The Ethereum upgrade is all the hype these days and is highly anticipated due to the scalability and security it promises. After multiple tests ran successfully, people are hopeful of a smooth launch in September.
Ethereum 2.0 is expected to be more energy-efficient and, therefore, a planet-friendly network that will allow for more transactions and increased security. Technically speaking, Ethereum is set to become a proof-of-stake (PoS) blockchain and will introduce sharded chains in its later stages.
With the Merger being close, institutional investment has soared. Big-shot investors are turning their focus on the ETH increasingly by the day.
In the latest edition of the Digital Asset Fund Flow Weekly report, CoinShares Head of Research James Butterfil said investor sentiment towards ETH derivatives and products is evolving – a development that is prominent due to the ETH merger.
The “Craze” for Ethereum
As per a report, many institutional investors are making preferential investments in Ethereum products and derivatives.
Investors believe that the upgrade to the world’s second largest cryptocurrency will have a hugely profitable and positive impact.
With the institutional investors becoming optimistic, a report indicated that Ethereum has seen more inflows which amount to about $16 million. This led to a continued pattern of inflows for seven weeks, accumulating up to $159 million.
Butterfell noted that the change in investor sentiment towards ETH shows more clarity with the merger.
The shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS) seems to bring about the much-needed transition for Ethereum. In its previous model, the Ethereum blockchain had been operating with a PoW mechanism for validating the transaction and security of its network. The PoW mechanism uses more energy or electricity because it depends upon mining, which is a huge drawback.
travel is not easy
Ethereum supporters are having a happy season with the launch soon.
However, crypto enthusiasts would recall that this merger has been delayed many times, and by several months. There have been multiple changes in roadmaps, ambiguous terminology, and also opposition towards it.
Ethereum founder Vitalik Buterin announced all possible hard forks for the transition. Even with the hard fork, ETH continued to find support. For example, the founder of Tron Justin Sun pledged to list both ETH and ETHW tokens on his Poloniex exchange. BitMEX also came forward, showing its support for any ETHPoW fork.
The transition, however, is a great opportunity for any PoW blockchain that may wish to change in the future. The merger will include linking the Ethereum mainnet and the Ethereum 2.0 Beacon Chain for a complete transition to PoS.
A major benefit of the change is the reduction in current carbon emissions by about 99%. This would be a good way to deal with the downsides of Ethereum as a PoW network.
When is the ETH2 launch?
With respect to the Ethereum 2.0 release, the next phase is set to launch in September.
But, how long do we have to wait for ETH2 now?
With Ethereum advancing slowly, the next step is the Ethereum Merge date. As per the latest scheduling, the Ethereum merge will be happening on September 15, 2022, Or September 16, 2022. In this Merger, the existing mainnet will be merged with ETH 2.0’s Beacon Chain, enabling a hundred percent staking. Following the merger, Ethereum Shard chains will be launched in 2023 in order to increase the blockchain capacity.
