@teosiangxiang24
The Ethereum 2.0 upgrade significantly impacts the DeFi ecosystem by enhancing scalability, security, and sustainability. The shift to Proof of Stake (PoS) reduces energy consumption by over 99%, making DeFi more eco-friendly. Sharding increases transaction throughput, potentially reaching thousands of transactions per second, reducing network congestion and gas fees. This improves user experience, lowers costs, and boosts liquidity, making DeFi more accessible to smaller investors. Enhanced security through PoS deters malicious attacks, fostering trust in DeFi protocols. The Pectra upgrade (2025) further optimizes staking and scalability, driving innovation in DeFi applications and expanding use cases