Citi Says Ether Remains Relatively Stable Despite Significance of the Merge

Following the transition, miners are no longer being issued rewards, the bank said, noting that these rewards equated to a supply of 4.9 million ether (ETH) a year. ETH issuance is estimated to drop 90% to around 600,000, and total supply on the first day of the Merge fell as the fees burnt were larger than rewards issued to validators, it added. Author: Will Canny Source link

Morgan Stanley Sees DeFi Remaining ‘Fairly Small’ as Growth to Slow

“Overcollateralization in lending/borrowing means DeFI lending doesn’t expand the money supply (for the same cryptocurrency), which means, without centralization, it will be harder for DeFi to be seen as an alternative to the current fractional reserve banking approach,” the note said. Therefore, the bank expects DeFi to remain fairly small in the coming years. Author: Will Canny Source link