Ethereum merge is a fundamentally bullish event for ETH

Merging Ethereum is a fundamentally positive development for $ETH.
The cost of ETH has risen by around 70%.
In mid-September, Ethereum will switch from proof of work to proof of stake.

Holders of ether (ETH), the blockchain’s native token, may be excited about the upcoming Merge, Ethereum’s long-awaited technological update that is expected to make ETH a deflationary cryptocurrency (one with a declining supply) and attract more purchasers to the market.

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The successful Goerli Testnet merging (the last Testnet) opened the door for future rises in ETHUSD. The changeover of Ethereum from proof of work to proof of stake is scheduled for mid-September, which is what has sparked the recent market reaction.

The new approach will boost network security, according to Ethereum developers, making network attacks nearly impossible. It will also use less energy, by around 99.9% less energy, making it more energy-efficient.

However, the purportedly positive pivot may be difficult to find for some time, predicts Singapore-based cryptocurrency trading firm QCP Capital.

In a newly released study, analysts at QCP stated: “The uber-bullish thesis is that ETH 2.0 will instantly start a new age of deflationary supply for ETH.”

The price of ETH has increased by nearly 70% from its most recent low as a result of the market’s positive reaction to the news. Despite the fact that some people will undoubtedly regard this as a “sell the news” event, the switch to PoS will change how ETH is distributed, which may support price action beyond the event itself.

The Ethereum blockchain required to issue of around 13,000 ETH each day under the old PoW method to pay the network validators, or “miners,” who had to purchase specialized computer equipment and pay for the power to run it

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.