After its historical record above 4,000 euros, Ethereum alone fell. Recently updated, The Merge aims to change the game giving the sign a whole new dimension. Because, if Ethereum occupies the second place in the ranking in terms of crypto, its technology was starting to age. With his update, Vitalik Buterin brought everyone together regarding the future of ETH in the market.
And yet, The Merger has so far shown only weak, if any, signs of growth. If this seems to be a concern, however, the context in which the update was made needs to be taken into account. We are in a bear market and values are at their lowest. But there are a whole bunch of promising new things coming up for ETH. Discover them in this article!
1. The ESG score for companies is evolving
The relationship that companies have with the environment is growing. These are the latter governed by the ESG score. This is a way of calculating a company’s carbon footprint. The better the latter, the more companies can access high investment funds. In other words, they must strictly protect a low carbon footprint to be able to develop their activity in the best way.
Ethereum has quickly become an ecological tonology
Switching from the Pow system to Ethereum’s PoS system, it reduced its energy consumption by more than 99%. This gave it a green encryption status and environmentally friendly. Thus, transaction costs and token creation are practically reduced to 0! With The Merge, Ethereum is attracting a great flow of investors, especially those who want to generate a return on their assets or those who want to use DeFi.
To give you an idea of the size of the ESG market, it is expected to grow the amount of 30 trillion dollars by the year 2030. All over the world, companies are adapting to have a high ESG score. Thus, Ethereum has started itself on the direct competition of Bitcoin, which is still a very energy intensive crypto. We also note that the trend is changing with very ambitious ecological projects emerging. We can refer to the IMPT token which has already raised several million dollars during its pre-sale.
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2. The deflation system succeeds the EIP-1559 Ethereum hard fork
EIP-1559 is a hard fork that was implemented on August 5, 2021 and was intended to make the price swings of the token more predictable. In other words, Vitalik Buterin, the creator of Ethereum wanted to make his crypto a little less volatile. It was also able to significantly reduce crypto transaction fees. The most interesting thing about the EIP-1559 is thatIt really helped to make ETH deflated. Effectively, it creates a system, which raises the basic fee level of Ethereum when demand increases. More ether tokens are burned in the process, which slows down token inflation. Conversely, when demand for Ethereum falls, fewer tokens are burned and thus the currency becomes inflated.
This mechanism, well-oiled, which gives Ethereum a very measured inflation of 0.7% per year, compared to 1.8% of its competitor Bitcoin. If the price of Ethereum has yet to climb, it is mainly due to concerns about the Shanghai fork in 2023 which is expected to release almost 14 million tokens. For those who are worried about the non-pumping of the token, we invite you to read the twitter thread of Mario Nawfal, a big name in the crypto community.
Anyone complaining about ETH not pumping post-merges has ZERO understanding of markets. The markets are FORWARD looking, so they price in AHEAD expectations
Ethereum, post 1 month Merge:
👇
— Mario Nawfal (@MarioNawfal) October 17, 2022
3. Many dApps planned thanks to The Merge
Ethereum is the catalyst for many decentralized applications that operate on the network’s substrates. These dApps participate in the ETH deflation system, because they require spending gas costs to operate. With all this activity seen and factored into the creation of The Merge, it is conceivable that Ethereum will tend to become deflationary in the near future.
If we look at this flood of users and developers working on crypto, it is very likely that this emulsion will sooner or later transcribe the price capture. The merger has brought many novelties, new dApps will soon appear in crowds with an understanding of the digital currency at the same time.
Is it a good idea to invest in Ethereum?
The main threat of the token is above all the “Ethereum killers”. Networks like Polygon have given us very elaborate technology that can compete with the Ethereum blockchain system. These other projects greatly contribute to the liquidity of the web. But for now, none of them have yet succeeded in de-crowning the new ecological digital currency.
According to Ivan Liljeqivst, a famous blockchain commentator and analyst, there is no doubt that crypto will appreciate as the years go by. According to him, it could rock even Bitcoin, which, unfortunately, is a currency with technology that is starting to get old. If you like keep up to date with the fluctuation in the value of Ethereumgo to our page that transcribes the courses in real time.
