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Ethereum’s shift to proof-of-stake draws increasing institutional interest

The success of the Merge propelled Ethereum from “a smart contract platform lagging behind” into “something that was doing things right,” Diogo Mónica, co-founder and president of Anchorage Digital, a crypto bank last valued over $3 billion, said to TechCrunch. “Interest from investors grew and the appetite changed dramatically.” And it’s true: Institutional interest in ETH staking increased after the Merge, Matt Hougan, CIO at Bitwise Asset Management, said to TechCrunch. “All of a sudden, by holding Ethereum, you went from holding a bet on smart contract platform to holding a bet that holds yield,” Mónica said. Staking is a way of earning rewards for holding a certain token (in this instance, ETH) for a certain amount of time. In return for staking, people are paid out yield or additional rewards in exchange for holding their coins to secure the network. In a way, it’s like having cash in your wallet or parking your cash in a bank CD, Hougan said. “You lock your money up in the CD and the bank pays you interest. In this example, you lock your ETH up in a staking pool and earn interest.”

Ethereum’s shift to proof-of-stake draws increasing institutional interest by Jacquelyn Melinek originally published on TechCrunch

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