DeFi Economist on Post-Merge Ethereum: It’s the ‘Basic of the Internet’

Decentralized Finance (DeFi) expert at Consensys blockchain firm David Shuttleworth has suggested that Ethereum (ETH) is now the “core of the Internet,” a factor validated by Merge’s recent upgrade that transformed the network into a Proof of Stake (PoS) protocol.

According to Shuttleworth, Ethereum could power more businesses with reference to the network’s ability to process more transactions than existing platforms like Visa (NYSE:V), he said during an interview with News from Kitco On October 6th.

He noted that Ethereum is in a position to mass adoption, citing features such as guaranteed security for users.

“I am by no means an Ethereum fanatic. I am a big fan of the multi-chain world, but I do believe that Ethereum acts as a settlement layer. <...> You know that Ethereum settled more transactions than Visa over the course of the year last year. “I think one of the things where the mass adoption of Ethereum just because of the security and the value that is guaranteed in it is a driver for people who use it to do business,” Shuttleworth said.

Ethereum still faces competition

However, Shuttleworth acknowledged that Ethereum still faces competition from other projects that also offer strong use cases in sectors such as DeFi.

Meanwhile, Shuttleworth noted that persistent macroeconomic factors are hampering Ethereum’s ability to attract and adopt massive capital inflows.

“Macro conditions need to calm down before we can almost see mass entry and mass influx into the ecosystem. Higher interest rates can have a silver lining for DeFi and that, especially with Ethereum, provided that network transactions go up a little bit I think you will see it start to contract. It becomes deflationary, that’s when it becomes very attractive to enterprises.”

Ethereum still shaky after the merger

In particular, after the merger upgrade, it was estimated that Ethereum was likely to register an increase in the number of institutions, with the asset becoming a contraction.

However, the value of Ethereum and the general crypto market has been offset by prevailing elements such as high inflation and the threat of further interest rate hikes.

For example, on October 3, Coinphony reported that the market capitalization of Ethereum had fallen by nearly 20% since the merger upgrade on September 15.

See the full interview below:

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DeFi Economist Appears After Ethereum Consolidation: It’s The ‘Basic Of The Internet’ Debuts On Coinphony.

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