Ethereum’s Success Attracts Investors and Provokes Critics
ETH-based funds saw fund inflows for the third consecutive week. Previously, outflows had not stopped since early April.
Institutional investors are warming to ETH amid Ethereum’s progress towards a full transition to Proof-of-Stake. Such conclusions were reached by analysts from CoinShares in their weekly report. According to their data, inflows to Ethereum-based institutional funds amounted to ~$7.6 million over the last week.
Fund inflows into Ethereum-based financial products continued for the third consecutive week, showing a turnaround in professional investor sentiment. Earlier, outflows continued for 11 weeks and totaled ~$460 million. In comparison, outflows from BTC-based funds are continuing, amounting to ~$1.7 million last week.
Overall, investors are showing bearish sentiment. For example, last week, inflows to U.S. crypto exchanges totaled ~$8.2 million, with 76% of them comprising short positions.
Ethereum’s Criticism and Success
However, Ethereum’s upcoming transition to version 2.0, during which the network’s consensus mechanism will change from Proof-of-Work to Proof-of-Stake, is drawing not only optimism from institutional investors, but also attacks from Twitter experts.
First, MicroStrategy CEO Michael Saylor said in an interview with Altcoin Daily that Ethereum is “obviously” a security. This idea was picked up by “PoW and Bitcoin supporters” on Twitter. Vitalik Buterin described one critic’s notion as an “unmitigated bare-faced lie.” Another “expert” said that PoS does not solve the Byzantine generals problem, in response to which Buterin reasonably doubted the validity of these arguments.
In addition to preparing for the transition to the Proof-of-Stake algorithm, other changes are taking place in the Ethereum network. Among the latest is the introduction of ERC-4907 tokens, which contributes to developing the non-fungible token rental market (NFT). In general, analysts say that Ethereum dominates the Web 3.0 sphere despite high competition from other blockchain projects.