Ethereum Merge Could Trigger Surge of interest in Staking and Entice Institutional Buyers

cryptonews.com:

Ethereum is in the final stages of preparations to switch from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS). This event, which is referred to as the Merge, is expected to have several benefits for Ether (ETH) - the native token of the Ethereum blockchain. 

According to a Chainalysis report, one of these benefits is that the Merge could trigger renewed interest in Ether (ETH) staking. This builds up on the fact that ETH staking is already highly popular. Over USD 30bn worth of ETH is already staked in Ethereum 2, making it the biggest blockchain by staked volume even before moving to PoS. 

When PoS is introduced fully, staking is expected to become more attractive as users across the entire Ethereum ecosystem become more comfortable with leaving PoW behind and embracing the more environmentally friendly PoS. 

Additionally, upgrades expected after the merge will enable stakers to withdraw their staked ETH at will as opposed to having to lock up their assets. This, in addition to an expected APY of 10-15%, will mean more liquidity for stakers. 

These prospects, especially the climate impact reduction and anticipated return on investment from staking, are also expected to attract institutional investors according to the blockchain analytics services provider. On-chain data already indicates that institutional buyers (wallets staking more than $1 million worth of ETH) have been increasing steadily. 

"Taken together, these changes, starting with The Merge, should make Ether a more attractive asset to hold, and therefore to stake as well… In addition to increased staking overall, we’ll also be on the lookout for institutional investors specifically to begin or ramp up their Ethereum staking activity," the