Ethereum Merge, which is quickly approaching, has triggered some fascinating developments in the cryptocurrency sector. The price of digital assets has risen to new heights, despite the current downtrend. It also held its value higher than the rest of the market. Ethereum now has another record before its much-anticipated Merge. It’s a victory against Bitcoin, which is the world’s largest cryptocurrency.
ETHBTC Touches New Heights
It is the ongoing battle for dominance between Bitcoin and Ethereum that has brought these two communities into conflict. While Bitcoin retains dominance over Ethereum, the other cryptocurrency, the market capital gap between the two has steadily narrowed over the past year.
ETHBTC traded at its peak towards the end 2021, before a fall sent it to yearly lows. With the Merge looming, Ethereum managed to narrow the gap and rallied to its yearly highest levels.
ETHBTC traded at 0.0847 BTC Tuesday. This is the highest level it’s been in seven year. This is despite suppressed futures base levels that have been triggered by Merge hedging activities.
ETHBTC reaches yearly records | Source: Arcane Research
Even in the downtrend, bitcoin continues to be a strong competitor for digital assets. Although it has lost ground at 0.0847 BTC, the digital asset is still strong above 0.08 BTC.
Ethereum Merge Leaves A Long Shadow
Vitalik Buterin, Ethereum’s founder and CEO explained via Twitter that the Merge would take place sometime in September between 13th-15th. Although this was a welcome announcement, it did not go down well with the community. However, the decision to prove stake is not something that everyone likes.
Source: ETHBTC at TradingView.com| Source: ETHBTC on TradingView.com
The most prominent disagreements came in the form ETH Forked Tokens. This is in an attempt to preserve the proof of Work mechanism and keep the network running. OpenSea has stated that it will support tokens only on Ethereum POS, but not all platforms.
These tokens are going to continue being in circulation. This raises questions about which token is the most suitable to invest in before the Merge. Both ETHPOS, and ETHPOW are speculated to pump together as they attempt to establish dominance.
Featured image taken from Medium. Also charts from Arcane Research and TradingView.com.
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