Arthur Hayes, former CEO of crypto exchange BitMEX, has said that the price of Ethereum, the second largest cryptocurrency on the market by market capitalization, could reach $3,000 after its mainnet switches to the proof-of-work (PoS) consensus algorithm, which will happen with The Merge upgrade.
According to him, the reduction in the number of ETH will be a powerful impetus for the asset’s price growth. Hayes believes the development of the DeFi segment is another factor that will contribute to the increase in demand for Ethereum.
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He believes that the activation of The Merge update would have been a major boost to ETH growth, were it not for the collapse of Terra and the bankruptcy of Three Arrows Capital a few weeks before the announcement.
Ethereum developers had planned for the network to migrate to PoS around September 15.
They activated the Bellatrix upgrade, which is the last step before The Merge, on September 6.