After the Federal Reserve announced an increase in the interest rates by 75 basis points (bps), Ethereum and other crypto markets saw some recovery. It was not surprising that financial institutions made this announcement. The second cryptocurrency by market cap may be able expand the bullish tendency without any external distractions.
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Ethereum (ETH) is trading at $1,640 as of this writing. It has a 11% profit within the last 24 hours, and a 7% gain over the past week. It has been reestablished as the most profitable asset among the top 10 market capitalized assets.
In an interview with Bankless, the inventor of Ethereum spoke about what could be the most bullish milestone for this blockchain since its inception: “The Merge”. The event that will complete ETH’s migration into a Proof-of-Stake (PoS) blockchain with the promise of bringing more scalability and better performance to the network.
The impact this event has on Ethereum’s price has been debated for several months. Some market participants believe “The Merge” is already priced-in, meaning its impact is currently reflected on ETH’s price, others believe the opposite.
Buterin himself is amongst the former, he believes “The Merge” is not priced-in from a market and psychological standpoint. Positive effects from this event could have ripple-effects across the whole Ethereum ecosystem.
These effects will kick in when “The Merge” has been deployed on the mainnet. Buterin stated:
Merge appears to be getting more visible in the rearview mirror. It’s looking more and more like “hey, this things is going to actually happen and when it happens I expect (developer’s) morale is going to go way up (…). I basically expect that “The Merge” is not going to be priced-in, by which I mean not just in market terms, but in psychological, and narrative terms (…).
What “The Merge” Could Spell For The Price Of Ethereum
Once “The Merge” has been implemented, Buterin predicts that Ethereum will change a “lot of minds”. This could potentially hint at the surge in the adoption of this network’s ecosystem.
A lot has been written about cryptocurrency and the alleged impact they have on the environment. “The Merge” is set to reduce Ethereum’s carbon emissions by 99%.
It could result in more capital and institutions being able to access the crypto space. This event may have important implications on price appreciation, adoption and development.
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On the latter, Buterin celebrated Ethereum’s capacity to improve its development speed across the years. After “The Merge”, ETH core developers will focus on scalability and building the infrastructure needed for mainstream adoption.