As Ethereum ( $3,970.25 ) shifts into proof-of-stake (PoS), a decentralized finance (DeFi) researcher has argued that the platform can overtake Bitcoin ( $99,735.00 ) ’s (BTC) throne as the top dog in crypto.
In a Twitter thread, researcher Vivek Raman highlighted that the upcoming Ethereum ( $3,970.25 ) Merge could create a better economic structure for the smart contract platform. According to Raman, the shift into PoS lowers Ether (ETH) inflation, gives better security and positions the crypto as a digital bond.
Raman said that after the Merge, ETH inflation will drop from 4.3% to 0.22%. The researcher explained that this gives the ecosystem a 95% reduction in issuance, limiting the number of ETH that can be sold in a day.
Additionally, the researcher also explained that the platform would be running on better security after the Merge. Citing a post by Ethereum ( $3,970.25 ) co-founder Vitalik Buterin, Raman highlighted that it would cost more to attack the network once it runs on PoS.
Apart from these, Raman also believes that the Ethereum ( $3,970.25 ) Merge will allow ETH to complement Bitcoin ( $99,735.00 ) ’s use cases as a store of value and a collateral asset. While BTC will function as digital gold, Raman argues that ETH will position itself as a digital bond and DeFi’s main asset used as collateral.
Related: Ethereum ( $3,970.25 ) Name Service registrations surge by 200% amid lower gas fees
Earlier in July, the average gas fees required to transact in the Ethereum ( $3,970.25 ) network dropped to $1.57, a number that was only seen back in 2020. The drop in gas fees follows the downward trend of NFT sales, with daily NFT purchases dropping to one-year lows.
While the network’s gas fees are low, registrations for the Ethereum ( $3,970.25 ) Name Service surged by 200%. This happened earlier in July when the ENS Dashboard showed a leap from 11,042 registrations to 29,727. The hype is also attributed to the second-largest ENS sale that happened on the same weekend as the surge in registrations.