Ethereum has an excellent chance of surpassing the market capitalization of bitcoin within the next 12 months. According to FSInsight analysts, the prerequisite for this is the transition of ETH to PoS. According to CoinDesk, BTC has a market capitalization of around $461 billion, while Ethereum has a market capitalization of $226 billion.

 

The transition, expected as soon as September 15, should reduce the production of tokens, as well as the pressure of miners on the sale of crypto coins. Analysts note that after the Merge, “supply inflation will decline” and miner pressure will “lock on zero.”

 

At the same time, the report from the research company says that there are misconceptions in the community that PoS will allow ETH to scale better. But analysts are convinced that this is not true, as the Ethereum blockchain will remain relatively expensive at a basic level.

 

According to Sean Farell, head of digital asset strategy at FSInsight, the project now has a goal of reducing energy consumption by 99.9%, which will allow more users to contribute to the production of blocks.

 

In predicting the impact of PoS, FSInsight did not rule out the possibility of some pressure from secondary market investors who want to mitigate post-merger risk. However, experts say that “balance sheets from deflationary supply can be incredibly price-constructive.”

 

Earlier, Ethereum co-founder Vitalik Buterin expressed the opinion that the departure of crypto-coin miners to other blockchains for the sake of mining according to “classic” rules will not interfere with PoS.

 

“I don’t think that another fork will somehow harm Ethereum. In general, according to my impressions, almost everyone with whom I talked in the Ethereum ecosystem supports the direction of PoS, it unites the ecosystem,” Buterin said.

 

What do you think about it?