As the Ethereum Merge draws to a close, many are anticipating the potential economic impact, and Lex Sokolin, chief economist at ConsenSys, shared his insights.
Experts discuss The Merge’s impact on users, developers, and businesses. Sokolin also clarified some misconceptions. and explains how this new development will affect the price of Ether (ETH).
at the user level Economists say that the average user will be able to use the chain normally, but one major effect for post-Merge users is that there is less risk of stake ETH.
“Right now, stakes on the beacon chain are at risk that the Merge won’t happen. but if it succeeds Participation in stake becomes more accessible. and less technical risks.”
In terms of impact on businesses and developers Experts say the Merge may set interest rates. for the entire Web3 space through ETH returns, which may eliminate the need for some speculative projects, according to Sokolin.
“We expect that Project risks and business opportunities can be assessed simply by staking ETH.”
This could have a significant impact on the decentralized finance (DeFi) space. This is because products have to compete with the rewards offered by stake ETH from the mainstream protocol. “That will allow the market to grow to its fullest. And it creates an opportunity cost for investors who are still chasing returns in places that are too risky,” he added.
When asked about expectations and People’s Misconceptions About The Merge It won’t cut GAS fees or solve problems for heavy workloads. However, Merge has laid the groundwork for these things going forward.
In terms of the impact on Ether’s price, economists believe that All technical developments will affect the value of ETH in some way. According to Sokolin, economic changes within the protocol often affect the supply and value of assets.
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