The merge, which will take place in the Ethereum (ETH) ecosystem, attracts the attention of many institutions / organizations. The most recent comments on Ethereum’s merge came from Bank of America (BofA). Meanwhile, the cryptocurrency market is experiencing a slight decline. Here are the details…
BofA analysts draw attention to Ethereum merge
cryptocoin.com As we reported, Ethereum (ETH) showed a price increase from mid-July to mid-August. However, according to some, this may continue to fade as investors try to better understand the implications of Ethereum’s Merge. At least, Bank of America pointed this out in a note on Friday. Additionally, investment bank Binance Smart Chain expects rival blockchains such as Tron, Avalanche, and Solana to gain market share until Ethereum overcomes current headwinds. So, it implies that cryptocurrencies such as Binance’s BNB, Tron’s TRX, AVAX and SOL could also be positively affected.
“Investors have probably realized that Ethereum’s seemingly close transition to proof-of-stake (PoS) will not address scalability concerns or the problem of high transaction fees,” BofA analyst Alkesh Shah said in a note to clients. Merge triggered a short-term price spike in Ethereum (ETH), Ethereum’s native token, traders said. Despite this, however, BofA analysts said the asset’s long-term outlook was affected by a weak macroeconomic sentiment. He also emphasized that he remained silent considering Bitcoin techniques are pointing to the downside.
Less than 20 days to ETH Merge
The long-awaited transition of blockchain from proof of work to proof of stake is scheduled for September 15. In the weeks leading up to the Merge, bets on ETH-linked volumes and derivatives have soared. Ethereum has successfully combined 11 “shadow forks” alongside the Ropston and Goerli testnets. The most recent of these happened before the protocol’s core developers meeting last week. Final Merge-ready clients were announced on Tuesday by the Ethereum Foundation’s mainnet Merge announcement.
Merge requires updates for clients in both the Beacon Chain (the new proof of stake(PoS) consensus layer) and the execution layer, which are clients running decentralized applications (dapps) on the existing proof of work (PoW) of Blockchain.
FED wind in crypto money markets
Meanwhile, cryptocurrencies and stock markets were negatively affected by the statements of the Chairman of the US Federal Reserve (FED). Speaking at the Jackson Hole conference on Friday, Fed Chairman Jerome Powell delivered the much-anticipated keynote address. It fell after Powell’s hawkish remarks. Last week, BTC dropped from $25,200 to $21,000 in a matter of days. Therefore, he was already going through tough times.
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