BitMEX Research claims that the upcoming merge upgrade could make Ethereum staking more attractive
one in recent threadAn investment research analyst at cryptocurrency derivatives exchange BitMEX argues that Ethereum’s upcoming transition to proof-of-stake could be potentially positive for the ETH token, mainly because it is more suitable for yield-hungry investors. will be attractive.
Ethereum staking became possible with the launch of the beacon chain back in December 2020. Those who choose to stake their ETH tokens can earn yields that are currently sitting around 4%.
The analyst believes that the merger is likely to boost the staking yield as some part of the fee proceeds will go to the stakers. This will make the idea of earning passive income by making Ether more attractive.
So far, staked tokens are locked up, and investors won’t be able to withdraw them immediately after the upcoming merge upgrade. That said, Ethereum’s long-anticipated transition to proof-of-stake will instill more confidence in stakers who plan to sell their tokens in the future. Hence, more investors are likely to stake after the merge.
Furthermore, as BitMEX Research notes, more Ethereum-based investment products may choose to offer yields after the upgrade.
At the same time, the analyst argues that deflationary dynamics and the dramatic decline in energy consumption will not be able to boost the price of Ether in a “significant way.”
The merge upgrade is expected to happen less than two weeks from now. As U.Today reports, Cosmos founder Ethan Buchman recently described the event as a “huge deal” for the industry.
