The reduction in energy consumption should have a positive impact on Etherium's green credentials, analysts say, as this is an important consideration for most big investors. Following a successful merger, ETH should receive a significant influx of large investments. Such statements were made this week by several prominent figures, top managers and company executives within the crypto industry.

What will happen to ether after PoS?

CEO and co-founder of Australian fintech company Block Earner Charlie Caraboga said in an interview with news portal Cointelegraph that the altcoin’s move to PoS “will lead to a more internet-centric future for money”. In his view, Etherium will become a “settlement level that everyone will accept and trust.

Ether has long held the palm in terms of the volume of decentralised protocols based on it. With the move to PoS and subsequent upgrades, the altcoin network will become much more profitable in terms of fees and transaction speed. And this is an important feature for the development of DeFi and NFT.

Ranking of altcoins by the amount of funds blocked in decentralised protocols based on them

Another point of view was shared by Markus Thielen, chief investment officer at IDEG. He has been in talks with sovereign wealth funds and central banks to help build their digital asset portfolios, but direct investments have often been “turned down because of energy concerns”. Now that the most popular altcoin has moved to Proof-of-Stake after all, that issue has been resolved. Here’s a relevant quote.

Despite the high demand, the missing link among the requirements of big investors was a basic zero-pollution financial infrastructure. With Etherium’s move to PoS, the latter doubts will clearly be resolved.

Etherium’s energy consumption over time

This was previously stated by Henrik Andersson, chief investment officer of crypto fund Apollo Capital. Blockwork co-founder Jason Janowitz, on the other hand, has a more radical view. He predicts a massive rebalancing of existing crypto portfolios at many institutions.

Fidelity, BlackRock, Goldman and so on… whether they like it or not, they now have to consider the environmental implications of their investment portfolios.

There are positives as well as some drawbacks to the merger. Among the latter is the potential increase in centralisation in the cryptocurrency network. This is what former FBI analyst Coby Morgan insists. While centralisation has been hotly debated even before the merger, Morgan suggested that the exorbitant cost of becoming a validator could lead to the consolidation of validator nodes under the auspices of large crypto platforms like Binance, Coinbase and Kraken.

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As a reminder, to become a full validator on the Etherium network, you need to deposit 32 ETH into the stack, which is around $47,000 today. A pre-merger report by blockchain analytics platform Nansen noted that 64 percent of ETH in the stack is controlled by just five venues. That is, a significant proportion of investors participate in staking through centralised hubs like exchanges.

Share of large organisations in total ETH in stacking

In theory, these large organisations will be “subject to the whims of governments” – sanctions, censorship or any other measures against individuals associated with exchanges with staking could significantly undermine the performance of the network. Exchanges themselves could also fall victim to hacker attacks or targeted government campaigns.

That said, as we found out earlier, the management of the aforementioned Coinbase in such a situation would try to minimise the damage to the blockchain or even file a lawsuit against such actions by regulators. In August, Brian Armstrong, the platform’s founder, voiced his position on such a hypothetical scenario.

Coinbase CEO Brian Armstrong


We'd like to believe that we won't have to face such a scenario of sanctions against stacking platforms in practice. In any case, it is important to remember that the degree of decentralisation is determined by the number of copies of the blockchain, and there is no problem with that. In addition, there is nothing stopping another platform from attracting users and growing its own share of the overall blockchain stack.

That said, moving the Etherium network to PoS could really help ETH's reputation. After all, sustainability is trending right now, so some investors will definitely change their bad attitude towards coins after something like that.


We think that such concerns are somewhat fair, but exaggerated. There are much more pros than cons of switching to PoS. What do you think about it? Share your opinion in our Millionaire Crypto Chat.