Ethereum 2.0 is just around the corner and traders sense opportunities to take advantage of the big merger. At the same time, experts seem unsure whether ETH will really go through the roof after the long-awaited update, as some investors are hoping and doubting.
Today we want to shed light on reasons that speak for and against the upcoming Ethereum 2.0 price explosions. We also take a look at a brand new cryptocurrency that is in the moment and could go through the roof anytime soon.
Ethereum merge: What the consensus switch could mean
The time has finally come in September: the biggest vulnerability in the Ethereum blockchain is likely to be fixed. With the much-touted merger, the consensus algorithm responsible for validating transactions on the blockchain will shift from proof-of-work to proof-of-issue.
Miners (like Bitcoin) will no longer be needed to confirm transactions and create new blocks. With staking, orders are validated by depositing units of the cryptocurrency.
The new PoS consensus mechanism will make the Ethereum merger much more energy efficient and environmentally friendly as miners no longer need to provide energy-intensive computing power. With the update, Ethereum could become more popular than it already is, and with the increase in the number of users and transactions, the ETH price would also skyrocket.
+46% per month: will Ethereum continue to rise?
The news alone that the Ethereum merger will be done next month has caused a real price rally in recent weeks. On July 17, the ETH token was still trading at a good €1,320, a month later the price is €1,930.
This has allowed traders to take more than 46% gains in the last four weeks, thanks only to the upcoming merger. But was that the price explosion, or will the price continue to rise until the day of the consensus change?
Experts are divided on this issue. On the one hand, it is claimed that the price of ETH will increase with the update – after all, the whole network will be more efficient and greener, the advantages should clearly outweigh the negative ones.
Bitcoin has long been the dominant cryptocurrency, but recently Ethereum’s native token ether has emerged as more than a clear number two pic.twitter.com/6vr8EgYhbx
— Business Insider (@BusinessInsider) August 20, 2022
On the other hand, with large stake validators, the ecosystem could become more uncertain and centralized, which should have a negative impact on the price. In addition, with miners for a long time, investors could also turn away from the second largest cryptocurrency and switch to Bitcoin, which could result in Ethereum losing support.
In addition, the Ethereum merger has attracted a lot of attention in the past, which also brings many new investors. Not only has Google searches for “Ethereum Merge” recently increased by a good 500% compared to the average over the last 12 months, but wallet addresses with at least 0.01 ETH have increased by over 40%.
Since so many people are anticipating the big Ethereum 2.0 update and are now investing in ETH, the 46% price increase in a month is not surprising. Some people think that many investors will immediately sell the tokens again after the merger, which could lead to a rapid drop in price.
A long-term ETH investment makes sense
Therefore, investing in ETH could be extremely risky in the short term. But with a long-term investment over the next few years, investors shouldn’t go far wrong if they trust the analysts’ forecasts and opinions.
With the Ethereum 2.0 update, the project proves that it is versatile and can continue to adapt to future developments. This means that many people believe in a successful long-term future for ETH.
If we look at the price forecast from Kursprognose.com, the predictions emphasize the positive and optimistic direction. By early 2025, ether could be worth more than €6,400 on average – a price increase of almost 240% would certainly be welcomed by many investors.
Analysts of the PricePrediction.net website are even more confident, speculating an average ETH price of almost USD 40,000 by 2030. That would make the price increase more than 2,000% over eight years, although caution should be exercised with long-term predictions such.
Conclusion: Will Ethereum 2.0 explode?
Overall, there is a good chance that the price of Ethereum will increase in the long term after the merger is done. With increased efficiency, the number of DApps, new smart contracts and users could skyrocket, making it harder for alternative platforms to outperform Ethereum.
However, it seems completely open how the price of ETH will move in the coming weeks. On the one hand, more and more people could become aware of the update, invest in the cryptocurrency and drive the price up.
On the other hand, it cannot be ruled out that many investors will sell their ETH coins shortly before or after the merger in order to profit from a price rally – in this case the price of Ethereum could fall in the short term and resulting in losses. for investors.
If you are willing to take the significant risk, investing in ETH in the short term is well worth it. Even a long-term investment in the smart contract platform is not without risk, although the chances of winning seem much better and safer here.
Ethereum alternative: This new memecoin is currently attracting a lot of attention
Currently there is a lot of talk in the crypto world, not only about the Ethereum merger, but also about a new memecoin: TamaDoge (TAMA). The canine cryptocurrency is currently in pre-sale, with more than $4.8 million already invested in TAMA.
TamaDoge is a new play-to-earn game where you can use TAMA to buy a virtual dog. This is secured by NFT and can be farmed, allowing you to sell the non-mungible token for more money with a bit of luck.
In addition, in the Tamaverse you can play with your virtual dog – like a Tamagotchi – take care of it and compete against other four-legged friends in various mini-games. Whichever player finishes on the leaderboard gets real coins as a reward.
Currently, native tokens of the Ethereum-based game can be purchased with USDT or ETH in a pre-sale on the official website. The dog NFTs should be available this year, and the first central exchanges (CEX) could list the TAMA token in the fourth quarter of 2022 and ensure lucrative price rallies. However, since the coins cannot be sold at the moment, the investment involves a certain risk.