Over the past few weeks, Ethereum has taken more market share than bitcoin. Merge, an announcement about Ethereum that took the world by storm just a month earlier, has led to this trend. Ethereum’s popularity has soared since then. However, with Ethereum’s declining value investors have become more wary of investing in it. But that doesn’t mean Ethereum isn’t a great investment.
Merge in the Next Year
Many people consider the Merge news a surprise. When developers said that the Merge was coming to an end sometime in September, it caused a commotion among the community. This upgrade is not just an upgrade; it’s also a signal to buy the digital asset.
With the introduction of proof of stake Ethereum will use 99.95% less electricity than before. The digital asset will consume 99.95% less energy than it used to. This eliminates the possibility of pollution and puts the government off the alert for governments that are considering sanctioning cryptocurrency mining because of how much they use.
ETH gains more than $1,600| Source: ETHUSD on TradingView.com
The Ethereum 2.0 contract does not automatically release the ETH that has been staked. This is another reason. Currently there are more than 11% staked on the Ethereum 2.0 contract, and new ones being added each day. According to developers, there will not be a withdrawal feature in the upgrade. It is likely that this will happen 6 months to one year after the Merge. The circulating supply will decline as ETH remains locked onto the network for 6 to 1 years.
Ethereum still looks bullish
Ethereum remains one of the bullishest cryptocurrencies on the market. Investors are seeing an accumulation trend in exchange netflow. Over $6.2 billion was moved from centralized exchanges in the past 7 days. The daily net flows follow the same trend.
Ethereum transaction fees have decreased significantly. Investors can now move their assets around the network at a favorable time because of this. At $0.4, ETH transaction fees are currently at 11.74 GWEI.
This digital asset was also able to resist the bulls. ETH was the only cryptocurrency to have seen its price remain above the 50-day average. This has helped reduce investor selling pressure.
As the Merge nears, there will be more anticipation. If this is true, the price for ETH will likely surpass $2,000 by the Merge.
Featured image taken from Finance Magnates. Chart from TradingView.com
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