One of the cryptocurrency market’s most ardent supporters has shared his opinions on the future of the market’s second-largest asset, Ethereum (ETH), as the digital assets shifts from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) algorithm.
Speaking with CNBC’s Squawk Box on August 10, Mike Novogratz, the CEO of cryptocurrency investment firm Galaxy Digital, revealed that he currently considers Ethereum his highest conviction crypto trade due to the imminent Merge upgrade.
“It’s moved a lot, but this Merge is a big deal it takes the supply of mining that used to constantly sell and actually locks it up in what we call Hodlers and long-term contracts, so you’re going to see the supply-demand imbalance in Ethereum really shift.”
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He added:
“Prices are always set on the margin so I think that was the enthusiasm that this Merge finally happening is going to continue to draw money into Ethereum.”
Merge upgrade
Notably, Ethereum has taken the top trending crypto spot on August 10 as the upcoming Merge nears, while also recently ETH futures trading volume reached a 3-month high ahead of the upgrade.
Notably, since the upgrade was announced, the value of ETH has increased, with the price resisting the market collapse. In turn, experts are anticipating several developments on the network. A recent report said that the Merge would function as a catalyst to propel Ethereum towards becoming a “global institutional-grade asset.”
Meanwhile, with the CPI report coming back at 8.5% lower than expected, the US Dollar Index dropped, while equities and crypto rallied.
In response, Ethereum jumped to trade at $1,830, up as much as 6.81% on the day and over 10% in the last week with a market cap of more than $223 billion.
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Featured image via Bloomberg’s YouTube (screenshot).
