One of the most talked-about events in the crypto space right now is the upcoming upgrade of the Ethereum network. Ethereum will be fully migrating from proof-of-work to proof-of-stake, a more efficient consensus mechanism.
But what can we expect from the upcoming upgrade? A lot! Interestingly, an Ethereum user recently compiled an educative article on what we can expect from the upgrade. One of the main highlights of Hal Press’ research work was the Ethereum network will diffuse $14 billion selling pressure on the ETH token once the migration to PoS is complete.
Today, Ethereum miners are rewarded with ETH tokens for validating blocks on the network. Miners sell approximately 40 million Ether tokens daily to make up for mining costs. This translates to over $14 billion in selling pressure annually. When miners are completely sent parking, this significant selling volume will be absent, giving rise to more growth.
Hall Believes ETH Will Always be King of DeFi Assets
Hall believes that an asset’s structural demand is usually not discussed enough. Structural demand plays a key role in the valuation of an asset, and according to Hall Press, this is the key reason why BNB has been able to maintain its position as a leading crypto asset amidst a significant negative narrative.
Hall Press also argued in favor of the Ethereum network in his research. He stated that while some crypto users believe Ethereum has been taking money away from investors, that is not the case. The high fees on the Ethereum blockchain are just a small price to pay for the network’s security.
Realistically, other blockchains like the Avalanche and Solana blockchain that have claimed to be Ethereum killers are not as decentralized. This poses a high level of risk to the network. In the DeFi world, Ethereum has always been king and will continue to be king even after the merge.
Like Apple products which dominate the technology world despite their premium pricing, Ether will always dominate DeFi, and its structural and recurring demand will continue to soar.
