ConsenSys: ETH could become a store of value after network merger

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Lex Sokolin, chief decentralized protocols economist at ConsenSys, believes that Ethereum has much higher growth potential in the short term than Bitcoin.

Lex Sokolin stated in a recentinterview that the upcoming Ethereum merger could fundamentally change the way ETH is used, making it more suitable for savings. In his opinion, a large portion of users will invest their ETH in the protocol to protect it, which will make it look like a store of value on the network.

ConsenSys manages several largeprojects built on Ethereum, such as the MetaMask cryptocurrency wallet, as well as the Infura blockchain node infrastructure service, which allows developers to ingest data and broadcast transactions on the blockchain.

Sokolin believes that the use of ETH inas collateral in DeFi protocols, it assumes that there are investors who see Ether as a store of value—that is, a super-reliable monetary asset. He added that ETH is often used not only to support the protocol, but also as a unit of account for all types of goods, services and NFTs on Web3.

“Ether has the function of a reliable asset andat the same time the function of preserving value. I'd love to see something like this in Bitcoin. If it could be used as collateral inside Web3, it would make it an even more sought-after asset,” Sokolin said.

Formerly CEO of FTX exchange SamSam Bankman-Fried called Ethereum's transition to a new algorithm a promising solution, but warned investors about potential losses in the crypto industry.