The Ethereum Merge has taken place, in what crypto experts are calling a gamechanger for the cryptocurrency sector.

The long-awaited upgrade has seen Ethereum shift from a proof-of-work to a proof-of-stake system, which requires much less power for mining - around 99.95% more efficient - and will make the protocol more secure and sustainable, CNBC reports.

StarkWare President and co-founder Eli Ben-Sasson told Cointelegraph that, “the immediate importance of the Merge is the dramatic effect on energy consumption.”

Ben-Sasson added that it also signifies “the first step in a process that will lead to exceedingly widespread adoption of Ethereum,” stating: “It starts a chain reaction of changes. The end result will be the very broad use of Ethereum’s computing power, and the general population using blockchain-based apps in many different areas of life.”

Last week, a statement by Bank of America said that the considerable decline in energy consumption following the Merge “may enable some institutional investors to purchase the token that were previously prohibited from purchasing tokens that run on blockchains leveraging proof of work (PoW) consensus mechanisms.”

Furthermore, the upgrade modifies the ‘tokenomics’ surrounding Ether. Danny Ryan, a core developer who has been working on the merge for five years, stated: “Ether itself becomes a productive asset. It’s not something you might just speculate on, but it’s something that can earn returns.”

deVere CEO Nigel Green said of the Merge: “This far-reaching overhaul of the most commercially important blockchain in the digital asset ecosystem is probably the most important, landmark event in crypto history, since the launch of Bitcoin.

“Besides having a more positive climate impact, The Merge’s effect of reducing supply, cutting costs and speeding up transactions will also appeal to both individuals and institutions. Due to the significance of The Merge, we expect the developments to bolster prices across the wider crypto market to some degree,” he added.