The transition of the Ethereum network from Proof-of-Work to Proof-of-Stake (PoS) will not solve the scalability or high-fee issues, but it could lead to broader institutional adoption. CoinDesk writes that this view was voiced by Bank of America (BofA) analysts.

According to the report, the significant reduction in power consumption after The Merge will allow some investors to buy Ethereum for the first time.

Ability to stake ETH as validator or via staking and generate higher quality returns (lower credit risk and liquidity risk) […] it can also encourage institutional adoption,” BofA experts admitted.

According to them, this situation will also affect the ecosystem. dapps. They cited Nexus Mutual, a DeFi mutual insurance project, as an example, and stated that to be an alternative to traditional companies, they must generate returns on their reserves.

Experts typically invest in corporate and government debt, but instruments with similar risk and reward characteristics are hard to find in the digital asset ecosystem. According to them, Ethereum staking could be a viable alternative.

Recall that the Ethereum developers planned the mainnet transition to PoS around September 15.

On September 6, they activated the Bellatrix update. Upgrade is the last step before Merge.

Former BitMEX bitcoin exchange CEO Arthur Hayes allowed Ethereum prices to surge to the $3,000 level after the second-largest cryptocurrency’s mainnet with a capital letter switched to PoS.

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