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Battered DeFi investors put their hopes in Ethereum revamp: Here's why

Fewer new issuances of Ether, a smaller carbon footprint and higher yields are among the upgrade outcomes that DeFi investors say will fuel an Ethereum rally and boost the industry

Ethereum
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Other technical glitches on Ethereum’s testnets could further delay the upgrade.

Bloomberg
Decentralized-finance investors are betting on Ethereum’s revamp to help thaw out the market’s more than two-months-long crypto winter.

The DeFi sector, where investors earn yields by trading and staking cryptocurrencies without centralized intermediaries, has declined sharply following the collapse of the TerraUSD stablecoin, and as soaring inflation puts the Federal Reserve on a path of monetary tightening. The Ethereum “Merge,” one of the most significant technical upgrades to the blockchain since its inception in 2015, may be one of the few catalysts that could give DeFi a much-needed lift.

Despite multiple delays, core developers have made major progress and Ethereum co-founder Vitalik

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First Published: May 28 2022 | 9:25 PM IST

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