DeFi investors want it EthereumAccording to Bloomberg, the merger will pull the crypto market away from the current bear market. report..
Data from DeFiLlama show that the total value of space-locked assets has touched a new low. According to data, DeFi TVL is less than $ 110 billion, the lowest since October 2021.
Bloomberg’s report linked this crash to a crash in Terra’s ecosystem with rising inflation. This forced the Federal Reserve Board to implement some monetary policy.
Why “merge” is important
Merger of Ethereum Arguably one of the most anticipated developments in crypto space. This is to move the blockchain from a proof-of-work consensus mechanism to a proof-of-stake mechanism that significantly reduces Ethereum’s energy usage and transaction fees.
Vance Spencer, co-founder of venture capital framework Ventures, said of the event:
Considering how the crypto market usually works, the biggest event is usually Bitcoin halved and Bitcoin supply halved. Here, the supply of Ethereum is reduced by 90% in an instant.
Ethereum co-founder Vitalik ButerinSuggests that the merge will be coming soon, alongside other top developers on the network, and could be as early as August. This is despite all the delays we have experienced in the past.
How does “The Merge” save DeFi?
According to a Bloomberg report, DeFi investors believe the Ethereum merger will help increase the value of the coin.
Wes Cowan, managing director of Valkyrie, revealed that his company is buying more Ethereum in anticipation of a merger to give holders a new level of opportunity in the market.
Based on a scheduled upgrade, the ETH holder will serve as a validation tool to help protect your blockchain.
Also, unlike miners who tend to sell mined tokens to cover their operating costs, validators have lower operating costs and are more likely to retain ETH.
Bloomberg also predicted that Ethereum could face less sales pressure when compared. BitcoinEspecially if the market ends up witnessing another round of huge sold-outs.
