Ethereum Merge Could Boost Coinbase Stock Price, According to Citi
Banking giant Citi recently announced that Ethereum (ETH)‘s upcoming transition to proof-of-stake, scheduled for next month, could be a significant bullish for the stock of Coinbase. According to Citi analyst Peter Christiansen, promising developments are brewing for Coinbase in the Ethereum merge and possible regulatory clarity for stablecoins. The analyst added that the former could equate to hundreds of millions of annual blockchain reward revenue for Coinbase (COIN) and drive Web 3.0 development. Citi’s positive stance on Coinbase comes as the exchange faces a new lawsuit from investors who felt misled into buying COIN.
What Are the Other Implications of the Ethereum Merge?
The Ethereum blockchain’s planned Merge, an upgrade that changes it from a proof-of-work (PoW) system to a more environmentally friendly proof-of-stake (PoS) mechanism, will have many implications. These include lower energy intensity, the transition into a deflationary asset, and a potential road map to a more scalable future. However, the Merge, the first of five planned upgrades, could increase transaction speeds by only 10% by reducing block times.
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