{"id":67036,"date":"2022-09-12T18:09:25","date_gmt":"2022-09-12T15:09:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=67036"},"modified":"2025-09-07T04:32:29","modified_gmt":"2025-09-07T01:32:29","slug":"bank-of-america-sees-ethereum-institutional-adoption-rise-after-the-merge","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bank-of-america-sees-ethereum-institutional-adoption-rise-after-the-merge\/","title":{"rendered":"Bank of America sees Ethereum institutional adoption rise after The Merge"},"content":{"rendered":"<p>The Ethereum network\u2019s transition from <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">Proof-of-Work<\/a> to <a href=\"https:\/\/forklog.com\/en\/news\/proof-of-stake-how-it-works-and-why-it-is-so-popular\">Proof-of-Stake<\/a> (PoS) will not solve scalability or high fees, but could lead to broader institutional adoption. This view was offered by Bank of America analysts, as reported by <a href=\\\"https:\/\/www.coindesk.com\/markets\/2022\/09\/12\/bank-of-america-says-the-ethereum-blockchains-upgrade-may-lead-to-greater-institutional-adoption-of-ether\/\\\">CoinDesk<\/a>.<\/p>\n<p>The notable drop in energy consumption after The Merge could allow some investors to acquire Ethereum for the first time.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThe ability to deploy ETH and generate higher-quality yields (lower credit risk and liquidity risk) as a validator or through<a href=\"https:\/\/forklog.com\/en\/news\/nft-staking-what-it-is-and-how-it-works\"> staking<\/a> [\u2026] also may spur institutional adoption,\u201d the BofA analysts stated.<\/p>\n<\/blockquote>\n<p>In their view, this dynamic would also reflect on the ecosystem of <span data-descr=\\\"decentralized applications\\\" class=\\\"old_tooltip\\\">dapps<\/span>. As an example, they cited Nexus Mutual, a DeFi mutual-insurance project, noting that it must generate yields on its reserves to become an alternative to traditional companies.<\/p>\n<p>Institutions typically invest in corporate and sovereign debt, but instruments with similar risk and return characteristics are hard to find in the digital-asset ecosystem, the analysts noted. In their view, Ethereum staking could be a suitable alternative.<\/p>\n<p>Earlier, Ethereum <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-developers-narrow-the-timeline-for-the-switch-to-proof-of-stake\">planned<\/a> to migrate the mainnet to PoS around September 15.<\/p>\n<p>On September 6 they <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-developers-activate-bellatrix-upgrade\">activated<\/a> the Bellatrix upgrade. The upgrade is the final step before The Merge.<\/p>\n<p>Former BitMEX CEO Arthur Hayes predicted a rally in Ethereum\u2019s price to the $3,000 level after the mainnet\u2019s transition to PoS, according to the report.<\/p>\n<p>Read ForkLog\u2019s Bitcoin news on our Telegram \u2014 cryptocurrency news, prices and analysis: <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Telegram<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ethereum network\u2019s transition from Proof-of-Work to Proof-of-Stake (PoS) will not solve scalability or high fees, but may lead to broader institutional adoption. This is the view of Bank of America (BofA) analysts, as reported by CoinDesk.<\/p>\n","protected":false},"author":1,"featured_media":67037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2027,46],"class_list":["post-67036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-america","tag-ethereum"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=67036"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67036\/revisions"}],"predecessor-version":[{"id":67038,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67036\/revisions\/67038"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/67037"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=67036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=67036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=67036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}