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Battered DeFi Investors Put Their Hopes in Ethereum Revamp

  • The Merge remains the sole bright spot in gloomy crypto winter
  • Upgrade could reduce new issuance of Ether by as much as 90%
The logos of Bitcoin, Ethereum and Tether on a cryptocurrency ATM. 

The logos of Bitcoin, Ethereum and Tether on a cryptocurrency ATM. 

Photographer: Paul Yeung/Bloomberg
From

Decentralized-finance investors are betting on Ethereum’s revamp to help thaw out the market’s more than two-months-long crypto winter. 

The DeFi sector, where investors earn yields by trading and staking cryptocurrencies without centralized intermediaries, has declined sharply following the collapse of the TerraUSD stablecoin, and as soaring inflation puts the Federal Reserve on a path of monetary tightening. The Ethereum “Merge,” one of the most significant technical upgrades to the blockchain since its inception in 2015, may be one of the few catalysts that could give DeFi a much-needed lift.