Ethereum ($ETH) – Metamask’s parent company reports on the impact the Ethereum merger could have on institutions: what’s next?

ConsenSys published a report this week entitled “The Effects of the Merger on Institutions.” ConsenSys is the leading Ethereum software company and creator of the metamask Wallet.

What happened: The report included an in-depth analysis of the dominance Ethereum has held over other blockchains in the areas of network participation, fees, log revenue, TVL, DeFii activity, and more.

With the merger of Proof-of-Work to Proof-of-Stake planned for mid-September, ConsenSys asserted that Ethereum’s lead among Layer 1 blockchains will continue to grow. The merger is expected to make the Ethereum network 99.95% more energy efficient and 10 to 20 times more secure.

In addition to network improvements, the cryptocurrency could become deflationary, which could lead to a price surge.

The report also noted that Ethereum institutional staking had become very popular, with more than 13.3 million Ethereum staked a month before the merger.

Institutions also diversified, notably through yield farming, lending and borrowing, digital asset trading, and collateralizing NFTs in crypto.

Why it matters: The decrease in energy consumption due to the elimination of proof-of-work is great for the Ethereum narrative. It grants institutions that could not invest in Ethereum due to ESG constraints the opportunity to invest now. Staking opportunities could also become attractive to institutions, with real returns expected to range between 5.5% and 13.2%.

See also: The Ethereum merger, explained

ConsenSys explained that the increased security is likely to be leveraged by Layer 2, bringing more value and DeFi applications to the Ethereum blockchain.

The merger is by no means the end of the Ethereum roadmap. Once Ethereum is successfully merged to proof-of-stake, it will focus on making the blockchain cheaper in a process called shardswhich could significantly reduce gas charges for network users.

Photo: 4K_HEAVEN via Shutterstock

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