The success of Ethereum’s Merge to increase ether’s institutional adoption

According to the research, the new economic structure resulting from the Merge along with token burn can result in negative token emission when demand is strong. According to a study report by Bernstein, the Ethereum Foundation’s successful completion of the Merge early on Thursday would probably result in a significant institutional adoption of the blockchain’s token, ether (ETH).

Given its economic transformation, scalability roadmap, and the thriving digital economy being created on it, the blockchain will “emerge as a digital asset category leader,” according to Bernstein. Due to ether’s dominant market share, market size, and liquidity, it also anticipates a significant institutional adoption of the cryptocurrency. According to a study report by Bernstein, the Ethereum Foundation’s successful completion of the Merge early on Thursday would probably result in a significant institutional adoption of the blockchain’s token, ether (ETH).

Given its economic transformation, scalability roadmap, and the thriving digital economy being created on it, the blockchain will “emerge as a digital asset category leader,” according to Bernstein. Due to ether’s dominant market share, market size, and liquidity, it also anticipates a significant institutional adoption of the cryptocurrency.

According to the article, block number #15537394 was the first block to be certified using the proof-of-stake (POS) mechanism, and 45 ETH were paid in tips. Within minutes of the changeover, the “chain attained finality,” according to Bernstein, with a validator participation rate of almost 95%.

The Merge, which included switching from a proof-of-work (PoW) consensus process to a more energy-efficient proof-of-stake (PoS) consensus mechanism, is the first of five planned upgrades for the Ethereum blockchain. Graphics processing unit (GPU) mining networks will no longer be necessary after the switch and are more likely to be employed by Ethereum splits, Ethereum Classic, or the gaming sector, according to Bernstein.

According to experts Gautam Chhugani and Manas Agrawal, the successful Merge is the outcome of years of preparation and marks a significant turning point in the Foundation’s goal for “growing Ethereum into the world’s biggest decentralized super-computing network.”

According to the memo, Ethereum’s token emissions will be lowered by around 90% from an investment standpoint, the network’s energy consumption will be decreased by nearly 99%, and holders of ETH may now receive a staking dividend.

The Merge’s new economic structure and the token burn might result in “negative token emissions” when there is a spike in demand. This places a cap on the overall quantity of ether and creates “digital scarcity,” the paper continued.