Ethereum exceeds 200 billion market capitalization. Ethereum has been on the rise in recent weeks and its price confirms the willingness of investors to believe in the project more than ever. Indeed, yesterday for a few hours ETH passed the $1800 mark bringing the value of the Ethereum market to more than $200 billion.
With The Merge coming in just over a month, Ethereum has definitely picked up the momentum in the crypto market. This long-awaited update will make the ETH blockchain much more ecological by reducing its energy consumption in addition to limiting competition for miners.
Ethereum strengthens its top 2 position in the world of cryptos
The last time Ethereum traded above $1,800 was a few months ago. More precisely, it was last May before the fall of Terra. Following this, the asset had fallen sharply to reach a value below $1,000 at the same time as Bitcoin fell below $20,000.
Fortunately, things seem to be improving positively for ETH which passed the $1800 mark yesterday, Monday, August 8th. At the time of writing the asset is surfing with the $1800 mark and is currently trading at $1779.61. This represents an increase of 3.97% over the last 24 hours and 12.69% over the last 7 days.
Thus, a month ago the value of ETH was $1214, an increase of nearly $600 in one month, which corresponds to an increase of 48.35 in the space of 4 weeks. An impressive leap that is intended to be reassuring for the future. As a bonus, according to CoinMarketCap, the market capitalization of ETH now exceeds $200 billion ($219 billion to be exact). Which corresponds to 70 billion dollars more over the last 4 weeks.
If of course, several reasons are the cause of this growth of Ethereum, the main one is called The Merge. Indeed, this update will make it possible to switch from the proof of work (PoW) protocol to proof of stake (PoS). Therefore, we will have the right to more ecological crypto, consuming less energy.
Positive for blockchain
The Merge is set to premiere on September 19. Although this date may change. Indeed, in the past, this update has been postponed several times. Although long-awaited, it remains difficult to implement.
However, there is strong investor anticipation which has led to this bullish movement in crypto for a few weeks. Of course, the slight rise in BTC also indirectly favors this rise.
Technically, once The Merge is in place, it should considerably reduce the energy consumption of the blockchain, transforming Ethereum into deflationary crypto while paving the way towards an evolution offering more scalability through a technique called “sharding”. in French) allowing the distribution of the data processing loads by dividing them.
For many investors, this change could radically change Ethereum and even transform it to the point that it could overtake Bitcoin. If we are obviously not at this stage yet, the various indicators of the last few weeks show that ETH is resisting the bear market while gaining value significantly.
Indirect impact on other cryptos
In addition, it should be noted that Ethereum influences the rest of the market, in particular Ethereum killers such as Solana or Polygon, which see their respective prices rise favorably simply because certain projects want to keep the PoW protocol and these second layers of the ETH blockchain. are potential solutions.
The same is true for Ethereum classic which has seen its price climb by 15% over the last 7 days, currently bringing it to $37.95. Indeed, Ethereum classic will keep the PoW protocol and could therefore be a good alternative for all projects that do not want The Merge and the PoS protocol.
Therefore, The Merge update energizes the crypto community by generating interest in the potential it could bring to the ETH blockchain, but also by allowing competing cryptos to gain more visibility by potentially becoming the new Ethereum of tomorrow.
A noisy update
If The Merge is long awaited by many investors, this update is not necessarily unanimous. Thus, several members of the community who are against this change have proposed a fork of Ethereum in order to keep the PoW protocol in place. However, the second largest mining pool called f2Pool has recognized the fact that this protocol is coming to an end.
One of the co-founders of Ethereum, Vitalik Buterin took the floor to speak on the subject by indicating that in his eyes a fork is not a bad thing and will not have any consequences on the Ethereum blockchain. Indeed, he said:
"I don't expect a fork to impact Ethereum."
A few weeks ago, he had even acknowledged that Ethereum Classic was a viable solution which he considered to be a good project to compensate for the novelties giving rise to The Merge.
Thus, it is obvious that even if this update is not welcome for everyone, it risks having a strong impact even more on the prices of Ethereum, but also on cryptos like Ethereum Classic, Solana, or Polygon.
Polygon with its new protocol and latest developments, including its participation in the Disney accelerator, has made its crypto of choice for investors in recent weeks.
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