A Decentralized Finance (DeFi) researcher argues that Ethereum will soon shift to proof-of-stake (PoS) and could overtake Bitcoin (BTC).
Vivek Raman, a researcher, highlighted the possibility of an improved economic structure for smart contracts by highlighting the Ethereum Merge. Raman claims that the shift to PoS lowers Ether(ETH) inflation, provides better security, and positions the crypto as an economic bond.
Raman stated that ETH inflation would drop from 4.3% down to 0.22% after the Merge. This gives the ecosystem a 95% decrease in issuance, limiting how many ETH can be sold per day.
The researcher explained that security would be improved after the Merge. Raman cited a post from Vitalik Buterin (ETHN co-founder) and said that attacking the network would be more expensive if it uses PoS.
Raman believes that the Ethereum merge will enable ETH to be used in addition to Bitcoin’s use cases, as a store-of-value and collateral asset. Raman believes that ETH will be positioned as a digital bond, and DeFi’s main collateral asset.
Related: Ethereum Name Service registrations rise by 200% amid lower gas prices
The average gas fee required to transact on the Ethereum network fell to $1.57 in July. This was a drop that was not seen since 2020. This drop in gas fees is due to a downward trend in NFT sales. Daily NFT purchases have fallen to a one-year low.
Although the network’s gas costs are low, registrations to the Ethereum Name Service soared by 200%. The ENS Dashboard revealed a jump of 11422 registrations to 29727 in July. This is due to the fact that the second largest ENS sale occurred on the weekend of the surge in registrations.
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