Ethereum has been stealing more market share than Bitcoin in the past few weeks. This is the result of the Merge announcement that took the space by storm about a month ago. Since then, interest in Ethereum has grown rapidly. However, with the fall in price, investors are becoming more cautious about investing in the market. However, this does not mean that Ethereum is no longer a good investment. Crypto expert Best Owie explains why and shares his predictions.
Why is the upcoming Ethereum Merge important?
cryptocoin.comFor many, the Merge story has been in the making for a long time. That’s why the community was overjoyed when the developers announced that Merge would take place around September 15th. But the upgrade isn’t just a major upgrade. Besides that, it also served as a good buy signal for the digital asset.
First, with the Proof-of-Stake (PoS) transition, Ethereum will consume approximately 99.95% less energy than before. This means that the concern of environmental pollution is eliminated for the digital asset. So this means it should go off the radar of governments that want to sanction cryptocurrency mining because it consumes too much energy.
Another good reason is the fact that ETH staked in Ethereum 2.0 will not be automatically released. Currently, over 11% of the total ETH supply, with more being added daily. The developers have announced that there is no retraction functionality included in the upgrade. This will likely come 6 months to 1 year after Merge. Simply put, ETH will be locked in the network for another 6 months to 1 year. It will therefore cause the circulating supply to fall.
“ETH still looks bullish”
Ethereum is one of the most bullish cryptocurrencies on the market right now. Stock market net flow shows a distinct trend of accumulation among investors in the space. Over the past 7 days, daily net flows have followed the same trend, moving more than $6.2 billion from centralized exchanges. Ethereum’s transaction fees have also decreased significantly. It has also been a good time for investors to move assets over the network. ETH transaction fees stand at 11.74 GWEI or $0.4.
The digital asset also managed to fend off the bulls. The price is still holding comfortably above the 50-day moving average. ETH has become one of the only cryptocurrencies in the space that has reduced the selling pressure on investors. To top it all off, anticipation will likely continue to rise as Merge gets closer. If the situation is the same as seen in the weeks after the announcement, ETH price is likely to surpass $2,000 before Merge.
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