Ethereum is preparing to overturn Bitcoin soon according to calculations

Source: Wit Olszweski – Shutterstock

• Mike McGlone, chief strategist at Bloomberg Intelligence, does not think it is too late for the effects of the merger to be felt.
• Caleb Sheridan, co-founder and product manager at Eden Network believes that centralization is a concern, but not a big one.

Ethereum recently embarked on one of the biggest upgrades in blockchain history after migrating from the Proof of Work to the Proof of Stake algorithm. Despite the hype surrounding the event and the expected price rise, the asset took a dive to as low as $1,200.

Mike McGlone, chief strategist at Bloomberg Intelligence does not Think that that it is too late for the impact after the merger to be felt. According to him, the completion of the merger during the severe global economic crisis combined with its dominant place in the digital financial revolution creates a new foundation for the network.

What’s stopping #Ethereum from outperforming #Bitcoin, #Stocks? Ethereum’s successful transition to proof-of-stake in the midst of the global energy crisis and its dominant position at the epicenter of the digitization of finance and money could be a basis for lasting price appreciation.

Ethereum is currently trading at $1,562 after rising 5.61 percent in the last 24 hours. McGlone believes the foundation is taking shape within its current price zone.

What stops #Ethereum From Outshining #Bitcoin, #Stock? Ethereum’s successful transition to proof-of-stake in the midst of the global energy crisis and its dominant position at the epicenter of the digitization of finance and money could be a basis for lasting price appreciation. pic.twitter.com/mbVo8XbNwg

— Mike McGlone (@mikemcglone11) 26 October 2022

Ethereum had global liquidity in excess of 14 percent during its peak in 2018. Currently, its global liquidity is -5 percent. According to his analogy, Ethereum is trading at a discount as part of the extended bull market. It’s also about four times the 2020 average despite being 71 percent down from the all-time high. This is a strong indication of how this altcoin works.

Ethereum faces centralization concerns

The success of ETH is likely hindered by the growing concern among the Ethereum community that it has become more centralized after the upgrade. It was recently reported that 63 percent of all Ethereum validators operate in compliance with OFAC. It is believed that the chance of a Bitcoin flip was higher before the upgrade.

As of last month, $22.3 billion was bet on Ethereum. Interestingly, around 60 percent of Ethereum is held on Lido Finance, Coinbase, Kraken and Binance. In this case, the centralized platforms are more likely to get blocks of transactions to add to the chain. Caleb Sheridan, co-founder and product manager at Eden Network believes that centralization is a concern, but not a big one.

I imagine we will see more [ETH] efforts to counter any behavior perceived as harmful to the network.

According to him, there is enough ETH in circulation that has not been staked. This means that other parties can put in more out of the centralized operators to minimize their control over the network.