{"id":491176,"date":"2022-09-08T08:15:34","date_gmt":"2022-09-08T05:15:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ether-price-could-decouple-from-other-crypto-post-merge-chainalysis\/"},"modified":"2022-09-08T08:15:34","modified_gmt":"2022-09-08T05:15:34","slug":"ether-price-could-decouple-from-other-crypto-post-merge-chainalysis","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ether-price-could-decouple-from-other-crypto-post-merge-chainalysis\/","title":{"rendered":"# Ether price could &#8216;decouple&#8217; from other crypto post Merge \u2014 Chainalysis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2fd43732374\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2fd43732374\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ether-price-could-decouple-from-other-crypto-post-merge-chainalysis\/#%E2%80%9D_Ether_price_could_%E2%80%98decouple_from_other_crypto_post_Merge_%E2%80%94_Chainalysis_%E2%80%9C\" >&#8221; Ether price could &#8216;decouple&#8217; from other crypto post Merge \u2014 Chainalysis &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ether_price_could_%E2%80%98decouple_from_other_crypto_post_Merge_%E2%80%94_Chainalysis_%E2%80%9C\"><\/span>&#8221; Ether price could &#8216;decouple&#8217; from other crypto post Merge \u2014 Chainalysis &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvMzAwMDI0YjItMjgwYy00NGJmLTk2ZDgtNzkxMGFjOTU4YjYwLmpwZWc=.jpeg\" \/><\/p>\n<div class=\"post-content\" data-v-71846793>Crypto analytics firm Chainalysis has suggested that the price of Ether (ETH) could decouple from other crypto assets post-Merge, with staking yields potentially driving strong institutional adoption.<\/p>\n<p>In a Sept. 7 report, Chainalysis <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.chainalysis.com\/reports\/ethereum-merge\/?utm_campaign=linkedin&amp;utm_source=OrganicSocial&amp;utm_content=Blog\">explained<\/a>\u00a0that the upcoming Ethereum upgrade would introduce\u00a0institutional investors to staking yields similar to certain instruments such as bonds and commodities, while also becoming much more eco-friendly.<\/p>\n<p>The report said ETH staking is expected to offer a 10-15% yield annually for stakers, therefore making ETH an \u201centicing bond alternative for institutional investors\u201d considering that treasury bonds yields <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.macrotrends.net\/2016\/10-year-treasury-bond-rate-yield-chart\">offer<\/a> much less in comparison. <\/p>\n<blockquote><p>\u201cEther\u2019s price could decouple from other cryptocurrencies following The Merge, as its staking rewards will make it similar to an instrument like a bond or commodity with a carry premium.\u201d<\/p><\/blockquote>\n<p>According to Chainalysis data, the number of institutional ETH stakers \u2014 those with $1 million worth of ETH staked or more \u2014 has \u201cbeen steadily increasing\u201d from under 200 as of January 2021 to around 1,100 as of August this year.<\/p>\n<p>The firm notes that if this number increases at a faster rate following The Merge, this should confirm the hypothesis that institutional investors \u201cdo indeed see Ethereum staking as a good yield-generating strategy.\u201d <\/p>\n<p>The Chainalysis report also tips ETH to draw in more retail and institutional traders after The Merge, as the forthcoming upgrade will make staking a much more attractive investment tool.<\/p>\n<p>Currently staked ETH is locked up in a smart contract that cannot be withdrawn from until the Shanghai upgrade comes around six to 12 months after the Merge goes through. <\/p>\n<p>As such the staked ETH market is currently illiquid, resulting in some staking service providers offering synthetic assets that represent the value of the staked Ether, the drawback however is that \u201cthose synthetics don\u2019t always maintain a 1:1 peg,&#8221; argues the firm.\u00a0<\/p>\n<p>\u201cThe Shanghai upgrade [&#8230;] will allow users to withdraw staked Ether at will, providing more liquidity for stakers and making staking a more attractive proposition overall,\u201d the report reads. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Binance US launches low-barrier Ethereum staking ahead of The Merge<\/em><\/strong><\/p>\n<p>Another factor highlighted is that the Ethereum blockchain\u2019s proof-of-stake transition will see its energy consumption requirements drop by as much as 99%\u00a0following the upgrade, as per the Ethereum Foundation. <\/p>\n<blockquote><p>\u201cThe switch to PoS will also make Ethereum more eco-friendly, which could make investors with sustainability commitments more comfortable with the asset. This especially <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lies to institutional investors.\u201d<\/p><\/blockquote>\n<p>ConsenSys, the firm behind the MetaMask wallet and founded by Ethereum co-founder Joseph Lubin, also published a similar report looking at the \u201cimpact of the Merge on Institutions\u201d this week. <\/p>\n<p>The report echoes similar sentiments regarding ETH staking rewards and environmental sustainability attracting institutions, but also highlights the importance of the PoS Ethereum chain \u201cproducing stronger security guarantees for institutional investors\u201d along with ETH\u2019s potential to become a deflationary asset: <\/p>\n<blockquote><p>\u201cReduced ETH issuance and increased burns will systematically reduce ETH supply \u2014 putting deflationary pressure on ETH, thereby alleviating institutional concerns of token price dropping to zero, and increasing likelihood of an increase in value.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ether-price-could-decouple-from-other-crypto-post-merge-chainalysis\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ether price could &#8216;decouple&#8217; from other crypto post Merge \u2014 Chainalysis &#8220; Crypto analytics firm Chainalysis has suggested that the price of Ether (ETH) could decouple from other crypto assets post-Merge, with staking yields potentially driving strong institutional adoption. In a Sept. 7 report, Chainalysis explained\u00a0that the upcoming Ethereum upgrade would introduce\u00a0institutional investors to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":491177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvMzAwMDI0YjItMjgwYy00NGJmLTk2ZDgtNzkxMGFjOTU4YjYwLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74894,74891,74876,74336,72366],"class_list":["post-491176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-blockchain","tag-ethereum","tag-proof-of-stake","tag-bonds","tag-data"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/491176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=491176"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/491176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/491177"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=491176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=491176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=491176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}