Ethereum Testnet Merger Is about to Start: Is ETH Price Coming to A Rebound?
2022-06-01 15:01:03
How Much Does the Ethereum Merger Affect Its Liquidity and Price?
At the recent ETH Shanghai Summit, Ethereum co-founder Vitalik Buterin told the community that the Ropsten Merge test network merger, which will begin on June 2 and finish on June 8, is the most important milestone for developers and is critical to the transition of Ethereum from proof-of-work to proof-of-stake. The Ethereum Merge will likely result in a 90% reduction in cryptocurrency supply. The reduction in the circulating supply of ETH could lead to a shortage, which could raise the price of the cryptocurrency.
Researcher Nikhil Shamapant presents the Ethereum triple halving hypothesis. If the implementation of EIP-1559, the destruction protocol, and the move from PoW to PoS are viable, then Ethereum trading volumes will drop to three halves of the Bitcoin halving. However, crypto specialist Rektcapital has studied the Ethereum price charts and says it is not surprising that the cottage coin has bounced back from significant support. ETH's price could continue to rise from current levels and hit $2,269, turning it into a new resistance level.
Before all this started, Ethereum was trading at $1,930.76 on the international digital currency exchange Gate.io at the time of writing, having dropped 3.0% in the last 24 hours with a volume of $16,991,777,865. As you can see, at the beginning of the cryptocurrency market's recovery, Ethereum's price is still hovering below $2,000. Will there be a big price change during and after Ethereum Ropsten Merge?
The developer of Ethereum 2.0, Paritosh Jayanthi, recently mentioned that it will now need to process 1.3 million transactions per day for the Ethereum merger test network, compared to the original volume of nearly 1.1 million transactions for Ethereum. It seems that investors have been paying attention to this point even before the merger started.
DeFi investors are hoping that the "Merger" in Ethereum will pull the crypto market out of its current bear market, and DeFiLlama data shows that the total value of assets locked in the space has hit a new low. DeFi TVL is under $110 billion, the lowest since October 2021, according to the data. But that could change with the Ethereum merger.
The number of addresses where ETH holds more than 100 coins reached 43,425 after Tim Beiko announced on Twitter on May 31 that the Ether merger was about to launch. The Ethereum merger is undoubtedly one of the most anticipated developments in the crypto space. Will this attract more investors or institutions to buy Ethereum?
At the recent ETH Shanghai Summit, Ethereum co-founder Vitalik Buterin told the community that the Ropsten Merge test network merger, which will begin on June 2 and finish on June 8, is the most important milestone for developers and is critical to the transition of Ethereum from proof-of-work to proof-of-stake. The Ethereum Merge will likely result in a 90% reduction in cryptocurrency supply. The reduction in the circulating supply of ETH could lead to a shortage, which could raise the price of the cryptocurrency.
Researcher Nikhil Shamapant presents the Ethereum triple halving hypothesis. If the implementation of EIP-1559, the destruction protocol, and the move from PoW to PoS are viable, then Ethereum trading volumes will drop to three halves of the Bitcoin halving. However, crypto specialist Rektcapital has studied the Ethereum price charts and says it is not surprising that the cottage coin has bounced back from significant support. ETH's price could continue to rise from current levels and hit $2,269, turning it into a new resistance level.
Before all this started, Ethereum was trading at $1,930.76 on the international digital currency exchange Gate.io at the time of writing, having dropped 3.0% in the last 24 hours with a volume of $16,991,777,865. As you can see, at the beginning of the cryptocurrency market's recovery, Ethereum's price is still hovering below $2,000. Will there be a big price change during and after Ethereum Ropsten Merge?
Transactions on the Ethereum Merge Test Network are Gradually Increasing
The developer of Ethereum 2.0, Paritosh Jayanthi, recently mentioned that it will now need to process 1.3 million transactions per day for the Ethereum merger test network, compared to the original volume of nearly 1.1 million transactions for Ethereum. It seems that investors have been paying attention to this point even before the merger started.
DeFi Investors Expect Ethereum Merger to Return to Bull Market
DeFi investors are hoping that the "Merger" in Ethereum will pull the crypto market out of its current bear market, and DeFiLlama data shows that the total value of assets locked in the space has hit a new low. DeFi TVL is under $110 billion, the lowest since October 2021, according to the data. But that could change with the Ethereum merger.
The number of addresses where ETH holds more than 100 coins reached 43,425 after Tim Beiko announced on Twitter on May 31 that the Ether merger was about to launch. The Ethereum merger is undoubtedly one of the most anticipated developments in the crypto space. Will this attract more investors or institutions to buy Ethereum?
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