ETH may fly to the moon after switching to Proof of stake (PoS)

Antoni Trenchev, co-founder and CEO of NEXO, expresses a strong bullish approach towards Ethereum.

The price of the second-largest cryptocurrency could increase significantly soon after the upcoming Ethereum update next month, said Antoni Trenchev, co-founder and CEO of Nexo, in an interview with CNBC. The upgrade will transition Ethereum from the Proof of Work (PoW) consensus mechanism to the Proof of Stake (PoS) model. The ETH / USD exchange rate slightly fell to around USD 1640 on Wednesday.

 Ethereum is an ideal platform and asset for allocating some funds, says Trenchev

- It all really depends on how quickly the new network will be able to serve customers and transactions. If all goes well, then we may have a positive feedback loop in which the ETH can rise much higher, says Trenchev.

According to the founder of Nexo, the macro-inflationary environment, whether it occurs sooner or later, is likely to be favorable for Ethereum, as it will most likely enjoy a relatively smaller supply after the update, which will affect the price of ETH.

- This change will make Ethereum much less inflationary. In an environment where we have to bear in mind the Fed's policy, which has been highly inflationary over the past years, after switching to PoS, ETH seems to be a great tool and asset to allocate some funds, he added.

Trenchev points out that Ethereum's transition to the new consensus mechanism is likely to support the growth and development of the entire network ecosystem, especially DeFi and NFT.

- Let's get ready to see great things that are already built on networks like Ethereum. DeFi, despite its difficult beginnings, has enormous potential. We are already able to build amazing things in the existing network. The transition to PoS will make Ethereum much more scalable, easier and more effective, he stressed.