Ethereum could become a “global institutional asset” through merger

As the cryptocurrency market slowly recovers from the bloody crash, Ethereum (ETH) could become a “global institutional asset” with the help of The Merge or its move to proof-of-stake, according to a new report.

A Bloomberg Intelligence report titled “Booms, Busts and Bitcoin” released on Wednesday called The Merge “an event catalyst that has the potential to transform ether into an institutional-grade global asset.” The outlet’s fundamental dashboard shows that the Ethereum ecosystem has rallied strongly as September’s launch of The Merge fast approaches.

ETH has outperformed various key adoption metrics with high price correlation, including addresses with non-zero balances, active users, and transactions “in absolute terms as of the last bear market and relative to Bitcoin,” the report noted, adding that ETH balances are non-zero hit their all-time highs with a 3-year performance of 100%, which is almost twice the performance of the Bitcoin network.



Additionally, active addresses saw a 5% year-over-year increase and 113% growth compared to the number of active addresses three years ago — a performance that surpassed Bitcoin, “which declined 30% over the same period,” According to the filing, in terms of transfer volume, the report noted that Ethereum was “steady” year-on-year, posting just a “7% decline despite a 29% drop in price.”

Ethereum’s core developers announced on July 29 that the third and final test before The Merge is planned, noting that the initiative is one step away from completion. The industry earned the nickname The Merge because it refers to the current mainnet protocol proof-of-work that Ethereum uses and merges with the Beacon Chain Proof-of-Stake blockchain system.

While many Ethereum investors are looking forward to The Merge, Canadian programmer and Ethereum co-founder Vitalik Buterin said at the Ethereum Community Conference in Paris last month that ETH will only be about 55% complete after The Merge. Merging is just the beginning as the blockchain must go through five stages to reach its ultimate goal.

The other stages it must go through are The Surge, The Verge, The Purge, and The Splurge. Buterin also claimed that once the blockchain completes these five phases, it can process 100,000 transactions per second.

ETH was trading down 2.18% to $1,621.48 with 24-hour volume of $16,131,861,504 as of 5:27 a.m. ET on Thursday based on the latest data from CoinMarketCap. Ethereum could become a “global institutional asset” through merger

Fry Electronics Team

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