Bithumb Research Lab "Ethereum Attractive After September Upgrade... Value Expected to Rise"

[Asia Economy Reporter Myung-hwan Lee] Bithumb Economic Research Institute, under the cryptocurrency exchange Bithumb, analyzed on the 16th that Ethereum (ETH) will emerge as a platform with growth potential after completing its upgrade in September. The upgrade is expected to reduce supply, thereby increasing asset value.

In the report titled "Ethereum, How It Changes After The Merge," released on the same day, Bithumb Economic Research Institute cited ▲supply reduction ▲improvement in transactions per second (TPS) ▲expectations of fee reduction as the reasons behind Ethereum's price rising about 84% from its one-month low.

In particular, Bithumb Economic Research Institute emphasized that the significant reduction in Ethereum supply after the merge will be an important change. After the merge, Ethereum will reward 90% fewer ETH than before. Considering the fee burn as well, the Ethereum balance is expected to decrease by 1-2% annually.

The low transaction throughput, a known issue of Ethereum, is also expected to improve through the merge. Vitalik Buterin, the creator of Ethereum, stated, "After the merge, through features such as rollups and data compression, Ethereum's TPS can expand up to 6000, and fees will be reduced to as low as $0.25."

Bithumb Economic Research Institute stated that this Beacon Chain merge will enhance Ethereum's value as a platform and strengthen its position as an attractive asset with limited supply. However, they pointed out that during the 'Shanghai Upgrade' following the network merge, some Ethereum locked in the mainnet may be withdrawn, potentially leading to partial sell-offs.

Lee Sae-seon, Head of Research Center at Bithumb Economic Research Institute, said, "Although sell-offs of Ethereum may occur after the Shanghai Upgrade, if convenience upgrades such as fee reductions proceed smoothly, concerns will be short-lived," emphasizing, "Supported by Ethereum's high growth potential and limited supply characteristics, Ethereum has the potential to emerge as a new long-term investment asset."