The co-founder and CEO of Nexo, Antoni Trenchev, is expressing bullish sentiment on Ethereum (ETH).
Trenchev says in a CNBC interview that the price of the second-largest crypto asset is setting up for a possible surge following the upcoming Ethereum upgrade next month.
The upgrade will see Ethereum transition from a proof of work (PoW) consensus mechanism to a proof of stake (PoS) model.
“It really depends on how quickly the new network picks up customer and transactions. Because then it becomes a positive feedback loop where it [ETH] could go much higher.”
According to the Nexo founder, an inflationary macro environment, whether it happens sooner or later, is likely to be a net plus for Ethereum since it will enjoy relatively reduced supply after the upgrade.
“… this change makes Ethereum less inflationary which in an environment where we have the Fed, which is anything but less inflationary, a great tool and an asset to allocate a portion of your funds in.”
Trenchev says that Ethereum’s transition to a new consensus mechanism will support the growth and development of the network’s ecosystem.
“You’re going to see great things that are already being built out on top of networks such as Ethereum. You know decentralized finance for all its nascency, it has great promises.
Some of the longer-term protocols that have been around have allowed for great yield generation which in a low-interest environments of the past decade, 15 years, has been very exciting. The metaverse, which is coming slightly slower than as crypto folks would have it…
There are great things to be built upon the existing network. And this shift to proof of stake is going to make it even easier and more efficient to do so.”
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The post Nexo CEO Says Ethereum (ETH) ‘Could Go Much Higher’ in Coming Months Under These Conditions appeared first on The Daily Hodl.
