Ethereum regain land after the bear market and the announcement of the upcoming merger to switch from the POW protocol to the POS protocol. It turns out that the Killer Ethereum also taking advantage of this effect to climb their prices in the last few days.
The “Ethereum Killers” in the green
Solana, Avalanche, Alrorand, Polkadot and Cardano benefit from Ethereum’s rise after announcement the merger (The Merge). Often referred to as Ethereum Killers because they offer similar features to the smart contract network, but with a much lower transaction cost.
This merger will replace the POW (Proof of Work) protocol with the POS (Proof of Stake) protocol. It is an algorithm that consumes much less energy and that minors do not compete. The Ethereum Killer already uses it for the most part, so there is the possibility of doing transactions at a lower cost.
So, in the last 24 hours, Solana (SOL) gained 11% with a peak of 36% in the last 7 days. The asset is currently trading at $45.37 from $33.7 a week ago. Likewise, Avalanche saw a earnings skyrocket with AVAX taking 10% since yesterday and 43% in the last 7 days to a current price of $25.55.
We get slightly more modest gains, but a equal behavior for Algorand, Polkadot or Cardano. As a result, ALGO took 7% in 24 hours and 25% in the last week (current price: $0.3745). As for Polkadot (DOT) it is 8% more of its value in the last hours and 23% in the last 7 days (current price: $8). Finally, Cardano (ADA) follows the same logic with gains of 8% in 24 hours and 23% during the week which brought it to $0.546.
Crypto-assets are a risky investment.
It seems that a positive impact on the market. Investors have decided to believe more in the project, but also in its competitors.
It must be said that Ethereum was worth around $1200 before this merger was announced. This cryptocurrency took almost 50% in a week to reach the $1547.86 at the time of this writing. So the market is closely following the next updates of ETH with The Merge which will happen this time on September 19th if all goes well.
As a bonus, Bitcoin has recovered in the past few days. Moreover, he crossed the $23,000 mark since yesterday, an increase of 8% in the last 24 hours and 19.46% in the last 7 days. It is well known that when bitcoin is positive, it affects the market favorably helping most other cryptos climb as well.
Know how to stay alert
After several dark weeks, this uprising for these major crypts could translate as the light at the end of the tunnel finally seen. However, not all analysts share this view, especially whether this rise will continue or not. GlobalBlock analyst Marcus Sotiriou spoke on Monday saying:
Although there was inflation data last week, the crypto market seems to have seen some relief leading to this general uptick. Still, when a market reacts positively to mostly negative news, it sounds like a sign that a plunge could break out and be much bigger. Investors’ fear can be a desire to drive the market up at all costs by fixing prices in this way until the negative news is too far gone.
The next Ethereum update and the addition of the POS protocol could change things depending on the success of the project. He is step by waiting for several months, just as important to implement as needed. This is not the first time that this update on Ethereum has been scheduled and pushed back.