Banking giant Citi’ analyst stated that upcoming development works in the Ethereum project to shift the network from Proof-of-work to Proof-of-stake may result in better outcomes for Coinbase’s COIN.
“The Merge” is a very important upgrade development work in the Ethereum blockchain project. Through the merge, developers will shift the Ethereum blockchain from Proof-of-work (PoW) consensus to Proof-of-stake (POS) consensus to make the transactions of the Ethereum network very efficient & much better, which will further make the Ethereum network affordable & useful for retail traders.
According to the Citi client note, Peter Christiansen, a Citi analyst, is looking at the stock price of Coinbase (COIN) for the next 90 days. According to Peter, Coinbase (COIN) is showing a bullish moment in the next three months because of the ongoing upgrade work in the Ethereum blockchain network.
Peter noted that “the merge” and regulatory clarity are two catalysts for the Coinbase exchange and it could turn into ” hundreds of millions of annual blockchain reward revenue for Coinbase (COIN)” and stimulate Web 3.0 development“.
Coinbase (COIN) price action
On 5 August, the price of COIN closed at $93.05 with a net 4.67% over the last trade day.
In the present situation, the COIN price is not much impressive because it is down by around 74% from its all-time high. Probably the analysis presented by the CITI analyst may play some significant role to back up the price of COIN.
Not only Coinbase stock is struggling but also the Coinbase team is struggling because of the ongoing two lawsuits, one against Coinbase & another against Coinbase’s former product manager Ishan Wahi.
One of the lawsuits is indirectly targeting the Coinbase exchange to provide unregistered securities trading. These things are creating huge controversy among the US regulatory bodies vs crypto companies.
Read also: In 2014, former Google CEO calls BITCOIN as a “remarkable cryptographic achievement”
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