Uncertain Crypto Market: Could Ethereum Overtake Bitcoin Over the ETH Merge?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Ethereum blockchain will see a significant change known as “the ETH Merge” that will occur around the middle of September. The Merge will combine the existing mainnet, which employs “proof of work” and holds every transaction, with the Beacon Chain, which uses “proof of stake.”
Uncertainty of the Crypto Market amid Merge
The cryptocurrency market has just made a slight comeback, but there is still a lot of uncertainty about where the market will go in the future. The speech by Powell on t has just made a slight comeback, but there is still a lot of uncertainty about where the market will go in the future. The speech by Powell on August 25th stopped the stock market from regulating and processing the news. The market may see another sell-off due to the anticipated increase in interest rates, as it did previously.
The cryptocurrency market has had a disastrous year. The market lost around $1 trillion in a dramatic meltdown, wiping thousands of people’s investments, and many businesses filed for bankruptcy. Due to the drop in the stock market, cryptocurrencies lost money, and the total loss was almost $100 billion. However, the crypto market is focusing on the merge. The price of ETH has increased dramatically due to the excellent media coverage of this event throughout the previous weeks.
The Ethereum network has a lot of active components. So any disruption might have a negative impact. But the community remains enthusiastic and eagerly awaits the upgrade’s execution. Additionally, companies and business owners with a financial stake in Ethereum mining are getting more concerned as the Merge approaches. As a result, crypto mining has grown into a multibillion-dollar industry dominated by publicly listed corporations.
Benefits and Risk of the ETH Merge
The Merge will eliminate the requirement for energy-intensive mining. It will protect the network with staked Ether, the second-most valued cryptocurrency after Bitcoin. The approach might also allow for scaling improvements. Additionally, it would lay the groundwork for future improvements, lowering the high transaction costs associated with using Ether.
However, the merger and its advantages are associated with risks. According to Chandler Guo, a crypto industry veteran who leads a group opposed to the merge, it is difficult and dangerous. Also, many crypto experts think changing this size would make Ethereum vulnerable to hackers and other problems.
Can Ethereum Overcome Bitcoin Over the Merge?
Joshua Lim, the head of derivatives at Genesis Trading, claimed that the most crucial statistic he looked at was the BTC Dominance. It shows how much of the total market capitalization comprises Bitcoin and ETH. Experts believe that bitcoin, one of the weakest performers during the last week, may continue to decline in September.
Other cryptocurrencies have been fluctuating sideways because of the dramatic price movement of Bitcoin. This rapidly moving value of BTC has alarmed investors. As a result, investors have started selling their Bitcoin and other digital assets in the cryptocurrency market.
Due to the volatility of the BTC, the term “flipping” has recently become popular in the cryptocurrency industry. It refers to the potential time frame during which Bitcoin will overtake Ethereum in market valuation. Many investors believe it is feasible that ETH will surpass BTC after the merge.