Ethereum’s Merge goal has been achieved but price isn’t moving (yet)

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The goal of the Ethereum merge was not only to switch to a ‘greener’ way of mining (the switch from proof of work to proof of stake), but also to ensure that less Ethereum would be in circulation Hopefully, the price would drive up.

Data for October shows that Ethereum is finally seeing its number of coins in circulation drop (deflationary) for the first time in its history, but the price is clearly still a bit behind.

Fidelity

As Ultrasound’s chart shows, Ethereum’s supply has recently been declining instead of growing, showing that the Merge is working as intended. Analysts now hope that investors will realize that their Ethereum coins can (logically) only rise in price, as it complies with the same principle as Bitcoin (scarcity) and that the ‘green’ concerns about crypto mining have disappeared thanks to the Merge.

Wall Street has seen this too, so it’s no surprise that Fidelity, a classic of US investment platforms, sent an email to its clients this month pointing out that Ethereum is an investment in the post-merge era that meets their approval.

Fidelity Digital Assets just sent an email to customers announcing that Ethereum will be available for purchase this month. pic.twitter.com/3V0GCrOt5z

— Bruce Fenton 🇺🇸 (@brucefenton) October 19, 2022

Fidelity stated that “institutional Ethereum capabilities are coming to the Fidelity Digital Assets platform on October 28, 2022,”

It will be interesting to see how Ethereum is affected by this in the last two months of the year.

According to the well-informed Wall Street Journal, Fidelity has some 34 million brokerage-accounts under management.