Bloomberg's exchange strategist is confident that Etherium's successful transition to the Proof-of-Stake consensus algorithm has laid the foundation for sustained growth in the second-capitalization cryptocurrency. On Wednesday, October 26, the exchange rate of Ether broke through the $1,500 mark for the first time since the successful merger of Etherium on September 15. The move to PoS is expected to make ether a deflationary asset and attract capital from institutional investors. However, according to CoinShares analysts, the Etherium merger never increased the flow of investment into the cryptocurrency market. In addition, contrary to traders' expectations, the altcoin showed a downtrend after the official transition of Etherium to PoS.
Mike McGlone wrote on Twitter that not only the merger that took place in the context of the global energy crisis can contribute to the growth of the Ether. Many developers prefer to use the Ethereum network to create decentralized finance (DeFi) applications. In addition, Ethereum smart contracts are used in the banking and financial sector, which could also serve as a reason for the growth of ETH. According to the analyst, during a sustained bull trend in the cryptocurrency market, ether "trades at a discount.