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Ethereum’s Merge Could Bring Optimism Back to Market and Underscore the Need to Move to…
The second largest cryptocurrency by market cap, Ether, jumped 45% this week as traders are getting bullish on the coming Ethereum Merge…
The second largest cryptocurrency by market cap, Ether, jumped 45% this week as traders are getting bullish on the coming Ethereum Merge, its switch to its lower energy and more efficient system of registering transactions.
The multiyear project will take Ethereum from the wasteful, energy intensive proof-of-work protocol to proof-of-stake, which provides networks with true finalization the ability to scale up with lower latency and low amortized cost of security.
Etherium announced its timeline for completing the Merge last week.
“Tim Beiko of the Ethereum Foundation projected this week that the Merge — Ethereum’s long-anticipated transition to a new design — might take place the week of Sept. 19.
Industry watchers say the Merge could have a broader impact on the crypto market.
“Nathaniel Whittemore, an influential podcaster and committed industry observer, suggested as much in his latest episode of “The Breakdown.” On Twitter, Discord and all the other places people discuss crypto, there’s a growing acknowledgement that “the Merge” could drive markets.
“The event signals, as Whittemore suggested, a “return of optimism” in crypto markets after a monthslong slog of depressed prices. Moreover, the Merge is filling a “narrative void,” the stories crypto folks can tell others about how this technology is reshaping the world.”
We are optimistic these events will prove the need for the market to move away from proof-of-work and more towards proof-of-stake, particularly as proof-of-work networks lack the speed and transaction throughput to ever serve as the payment medium for daily transactions.