- Ethereum’s lead developer Preston Van Loon believes that the Merge will drive widespread adoption of the altcoin.
- Ethereum aims to be the global settlement layer and with the transition to proof-of-stake developers expect ETH to become the preferred crypto.
- Analysts believe Ethereum is on track to hit its $2,000 target as the altcoin recovers from its slump.
Ethereum heads into the Merge within the next few days, therefore holders are awaiting a massive impact on the altcoin’s blockchain. Developer Preston Van Loon confirmed that the change in Ethereum’s consensus mechanism could drive ETH price higher.
Ethereum’s impending Merge is a game changer for ETH
Ethereum’s Merge is a key event that ETH holders and the crypto community is looking forward to. The transition from proof-of-work to proof-of-stake is set to change the way new Ether is created and reduce power consumption by 99.95%.
In the days leading up to the Merge, there is a decline in capital inflow in Ethereum. Irrespective of the drop in Total Value Locked and the reduced capital inflow from investors and institutions, analysts remain bullish on Ethereum.
Preston Van Loon, an Ethereum protocol developer at Prysmatic Labs told CoinDesk TV that ETH’s objective is to be a “global settlement layer” and this will become likely with the Merge. The transition to PoS could drive Ethereum adoption higher. In the long term, network security and cost of transaction could reduce, thereby making Ethereum the preferred blockchain for developers.
Ethereum’s Bellatrix upgrade, the last hard fork of the network before the Merge was implemented on Tuesday. Van Loon explained,
What it means is the proof-of-work side of Ethereum is now ready to merge with the proof-of-stake side. We see this [environmental impact of PoW] as a barrier for global adoption.
Van Loon argues that the beauty of proof-of-stake is having something at stake. Therefore saying I’m behaving in an honest way, rather than relying on this work mechanism. Since Ethereum’s energy consumption will be reduced, institutions would adopt the ETH blockchain.
Analysts set a $2,000 target for Ethereum
Analysts revealed a bullish outlook on Ethereum and set a $2,000 target for ETH. The altcoin started its recovery from the recent slump and hit the $1,765 level. Tony M, a leading crypto analyst believes ETH is on track for its recovery to $2,000.
ETH-USDT price chart