Source: Wit Olszweski – Shutterstock
- Mike McGlone, lead strategist at Bloomberg Intelligence does not think that it is too late for the post-merge impact to be felt.
- Caleb Sheridan, co-founder, and the product lead at Eden Network believes that centralization is a concern but not a huge one.
Ethereum recently embarked on one of the biggest upgrades in blockchain history after migrating from the Proof of Work to the Proof of Stake algorithm. Despite the hype surrounding the event and the expected price surge, the asset took a nosedive to as low as $1200.
Mike McGlone, lead strategist at Bloomberg Intelligence does not think that it is too late for the post-merge impact to be felt. According to him, the execution of the merge during the severe global economic crisis coupled with its dominant place in the digital financial revolution is creating a new foundation for the network.
What Stops #Ethereum From Outshining #Bitcoin, #Stocks? Ethereum’s successful transition to proof-of-stake amid the global energy crisis and its dominant position at the epicenter of the digitalization of finance and money may be a foundation for enduring price appreciation.
Ethereum is currently trading at $1,562 after surging by 5.61 percent in the last 24 hours. McGlone believes that the Foundation is taking shape within its current price zone.
What Stops #Ethereum From Outshining #Bitcoin, #Stocks? Ethereum’s successful transition to proof-of-stake amid the global energy crisis and its dominant position at the epicenter of the digitalization of finance and money may be a foundation for enduring price appreciation. pic.twitter.com/mbVo8XbNwg
— Mike McGlone (@mikemcglone11) October 26, 2022
Ethereum had global liquidity in excess of 14 percent during its peak in 2018. Currently, its global liquidity is -5 percent. Per his analogy, Ethereum is trading at a discount as part of the extended bull market. It is also about four times the 2020 average despite being 71 percent down from its all-time high. This is a strong indication of how this altcoin operates.
Ethereum faces centralization concerns
The success of the ETH is probably hindered by the rising concerns among the Ethereum community that it has become more centralized following the upgrade. It was recently reported that 63 percent of all Ethereum validators are operating in line with OFAC. It is believed that the chance of a Bitcoin flip was higher before the upgrade.
As of last month, $22.3 billion were staked on Ethereum. Interestingly, about 60 percent of Ethereum is being held on Lido Finance, Coinbase, Kraken, and Binance. In this case, the centralized platforms have a higher likelihood of getting blocks of transactions to add to the chain. Caleb Sheridan, co-founder, and the product lead at Eden Network believes that centralization is a concern but not a huge one.
I imagine we would see more [ETH] staked to counteract any behavior perceived as harmful to the network.
According to him, there are enough ETH in circulation that is not staked. This means that other parties can deposit more to out stake the centralized incumbents to minimize their control of the network.
Credit: Source link
