%Ethereum ($ETH) developers have successfully tested the long-awaited merge of the programmable blockchain’s proof-of-work and proof-of-stake chains, dubbed “Eth 2.0.”
The upgrade allows users to hold coins in a %Cryptocurrency wallet to support network operations in return for newly minted coins.
Ether staking yields are forecast to now be in the range of 10% to 15%. Investors are likely to prefer any asset or investment strategy offering positive real yields in such a volatile market.
Most traditional investments are currently yielding negative returns when adjusted for inflation, which is sitting at a 40-year high in the U.S. In cryptocurrency, the popular Bitcoin cash and carry trade now yields -4.9% in real terms.
With the Eth 2.0 merge test run completed successfully, researchers expect the mainnet launch to happen by the end of June. Observers foresee increased institutional adoption once the Eth 2.0 upgrade is completed this summer.
The proof-of-stake consensus mechanism is more environmentally friendly than proof of work, which rewards miners with tokens for solving complex mathematical puzzles to validate transactions. That process is energy intensive.
Some sources say %Bitcoin ($BTC) mining has a carbon footprint equivalent to developed nations, which has deterred some institutions from adopting the cryptocurrency.
Over 10 million Ethereum are locked in the deposit contract, according to data from %CoinDesk. The merge is likely to make Ethereum a deflationary, or store-of-value asset, a narrative primarily tied to Bitcoin.
Ethereum rose 13% in the past week, its biggest gain in seven weeks, and is now trading near $3,000 U.S. per coin.