The die-down in hype was expected, but that is because the Ethereum Merge is still about a month away.
Ethereum is set to switch from the Proof-of-Work mechanism to a Proof-of-Stake mechanism on September 6. ETH will no longer need a huge amount of computing power for cryptocurrency minting and verification of transactions of crypto investors. It will reduce energy consumption by around 99% in the crypto market which is suitable for decentralization. The launch date of the Ethereum merge has also increased the price of ETH to come back from the drastic crypto crash in the crypto winter season. Proof-of-Stake or PoS mechanism can ensure crypto investors mint cryptocurrency they haven’t earned in the crypto market. This will help the cryptocurrency network to be secured and keep on running in the crypto market. Ethereum merge will be activated on the Beacon Chain as epoch 144896.
Crypto investors are highly interested in ETH products for the integration of smart contracts and their own ETH blockchain network. Meanwhile, the ETH management has also created a bug bounty for crypto investors to identify any critical bug issue in the Ethereum 2.0 version by offering a reward of up to US$250k. Ethereum 2.0 is ready to release after multiple dress rehearsals on multiple different test networks such as Ropsten, Goerli, and many more. The ETH network has worked on researching, developing, analyzing, testing, specifying, breaking, fixing, and explaining for the successful announcement of the release date of the Ethereum merge.
The hype around the Ethereum network had built up following the announcement that the Merge was scheduled to take place on September 15th if everything went according to plan. The price of ETH had seen a massive run-up off the back of the news, seeing it touch above $2,000, albeit briefly. However, as the weeks have passed, the hype around the Merge has begun to die down as people get used to it, causing the price of ETH to slide.
The die-down in hype was expected, but that is because the Merge is still about a month away. Investor sentiment is expected to recover as the market ushers in the new month. Furthermore, it is very likely that this will turn into a ‘buy the rumor, sell the news’ event where investors ramp up buying all the way up to the Merge and dump on completion.
If this happens to be the case, then the price of ETH is likely to touch $2,000 once more before the Merge. The accelerated buying and staking of ETH ahead of the update will also drag the market upwards with it as it previously did, causing others such as Bitcoin to revisit local highs.
Ethereum’s Triple-Halving Event to Promote Instant Price Surge
As per expert predictions, the launch of the Merge upgrade will trigger a triple-halving event for the crypto. They believe that since BTC has mostly reacted positively to halving, it is also likely that Ethereum value will also surge instantly, given the two are quite closely related. Now, let’s dive in deep to understand the ‘triple-halving event’ and the reason behind its importance to raise the value of Ethereum.
When the Ethereum network turns to the PoS consensus mechanism after the Merge upgrade is launched, the ETH supply will decline by approximately 80% to 90% through a process called ‘burning’ and generating ‘deflationary pressure’ on the network, which is equal to halving the Bitcoin system three times, this is the ‘triple-halving’ for Ethereum. The crypto’s EIP-1599 protocol, also known as the Ethereum London fork, accompanied by the PoS consensus algorithm will drastically reduce the issuance of ETH. After this development, the demand for Ethereum is expected to dramatically increase in the upcoming months.
So, when should you buy Ethereum?
Based on expert perspectives, Ethereum 2.0 is supposed to establish a stronghold for the crypto in the DeFi and Web 3.0 industry, leaving little room for Bitcoin to reign as the largest cryptocurrency in the world. There are plenty of assumptions revolving around the market that depict the Merge upgrade will fail to appease investors, but its current price rally proves quite otherwise. According to Hayes, ETH is currently providing massive investment opportunities for buyers, hence, now will be a good time for investors to buy and hold the token to generate massive amounts of profits in the future.
We've shared and upvoted your post on @crypto.defrag
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit