Ethereum has been on the rise in recent weeks and its price confirms the willingness of investors to believe in the project more than ever. In fact, yesterday for a few hours ETH ran the $1800 mark bringing Ethereum’s market value to over $200 billion.
With The Merge coming in just over a month Ethereum is certain pick up colors in the crypto market. The long-awaited update will make the ETH blockchain much more ecological by reducing its energy consumption as well as limiting competition for miners.
Ethereum strengthens its top 2 position in the crypto world
The last time Ethereum traded above $1,800 was a few months ago. More precisely, it was last May before the fall of Terra. After that the asset fell sharply to reach a value below $1,000 at the same time as Bitcoin fell below $20,000.
Fortunately, things seem to be improving positively for ETH which broke the $1800 mark yesterday, Monday August 8th. At the time of writing the asset is hovering at the $1800 mark and trading present $1779.61. This represents an increase of 3.97% in the last 24 hours and 12.69% in the last 7 days.
So, a month ago the value of ETH was $1214 or an increase of almost $600 in one month which corresponds to an increase of 48.35 in the space of 4 weeks. A significant jump that is planned to be positive for the future. As a bonus, according to CoinMarketCap, the market capitalization of ETH is more than $200 billion ($219 billion to be exact). Which corresponds to 70 billion dollars more in the last 4 weeks.
If, of course, this growth of Ethereum is due to various reasons, the main one is called The Merge. In fact, this update will make it possible to switch from proof-of-work (PoW) to proof-of-stake (PoS) protocol. Therefore, we will therefore be right greener crypto, consuming less energy.
Crypto-assets are a risky investment.
Positive for blockchain
The Merger premiered on September 19. Although this date may change. In fact, in the past this update has been delayed several times. Although long awaited, it is still difficult to implement.
However, there is a strong investor outlook as a result this bullish move crypto for a few weeks. Of course, the small rise in BTC is indirectly in favor of this rise.
Technically, when the Merger is in place it really should be reducing the energy consumption of the blockchain Transforming Ethereum into a deflationary crypto paving the way towards an evolution that offers more scalability through a technique called “sharding” (sharding in French) that allows the data processing loads to be distributed by dividing them.
For many investors this change could fundamentally change Ethereum and even change it to the point that it it could surpass Bitcoin. If it is clear that we are not at this stage yet, various indicators of the last week show that ETH is resisting the bear market and gaining significant value.
Indirect impact on other cryptos
In addition, it should be noted that Ethereum impact on the rest of the market especially Ethereum killers like Solana or Polygán who see their respective prices climbing favorably simply because some projects want to keep the PoW protocol and these second layers of the ETH blockchain are possible solutions.
The same is true for Ethereum classic where their price has increased 15% for the last 7 days, currently $37.95. In fact, Ethereum classic will keep the PoW protocol so it could be a good alternative for all projects that don’t want The Merge and the PoS protocol.
Therefore, The Merge update the energy of the encrypted community by generating interest through the potential it could bring to the ETH blockchain, but also by allowing competing cryptos to gain more visibility by becoming the new Ethereum of tomorrow.
If many investors have been waiting for the Merge for a long time, this update however, not unanimous. Therefore, some members of the community who are against this change have proposed an Ethereum fork to keep the PoW protocol in place. However, the second largest mining pool called f2Pool has acknowledged that this protocol is coming to an end.
One of the co-founders of Ethereum, Vitalik Buterin spoke to express himself on the matter by stating that a fork is not a bad thing in his eyes and will have no consequence on the Ethereum blockchain. Indeed, he said:
I don’t expect a fork to affect Ethereum.
A few weeks ago he even admitted that Ethereum was cCassic workable solution which he considered to be a good project in return for the novels that would lead to The Merge.
So, it’s clear that even if this update isn’t welcomed by everyone, it’s likely to have a strong impact Ethereum prices even more, but also cryptos like Ethereum Classic, Solana or Polygon.
Polygon with sound new protocol and its latest developments, including its participation in the Disney accelerator, have made it a crypto of choice for investors in recent weeks.