Ethereum and the crypto market regained some gains slightly after the Federal Reserve (Fed) announced a 75 basis points (bps) rate hike. There was no surprise from financial institutions, and the second cryptocurrency by market capitalization may be able to extend the uptrend without external distractions.
At the time of writing, Ethereum (ETH) is trading at $1,640 with a gain of 11% in the last 24 hours and a gain of 7% over the past week. The cryptocurrency has regained its place as the top performing asset in the top ten by market capitalization.
In an interview with Bankless, the inventor of Ethereum spoke about what could be the most bullish sign for this blockchain since its inception: “merging.” The event that will complete the migration of ETH to the Proof of Stake (PoS) blockchain with the promise of bringing more scalability and better performance to the network.
For months, there has been an ongoing debate about the impact of this event on the price of Ethereum. Some market participants believe that the “merger” is already priced in, which means that it is currently having an effect on the price of ETH, while others believe the opposite.
Buterin himself is among the first, he believes that “merging” is not priced from a market and psychological point of view. The positive impact of this event will have implications with the possibility of ripples across the entire Ethereum ecosystem.
These effects will start when the “merge” is published on the main network. Buterene He said:
Merging looks more and more in the review mirror. It’s more and more like “Hey, these things are really going to happen and when that happens I expect (developer) morale to go up a lot (…). Basically I expect “merging” not to be priced, which I mean not just in terms of market, but of Psychological and narrative aspect (…).
What ‘consolidation’ could mean for the price of Ethereum
Once the “merger” is implemented, Buterin expects Ethereum to change “a lot of minds.” This could indicate a sudden rise in ecosystem adoption of this network.
There has been a lot of talk about cryptocurrencies and their alleged negative impact on the environment. The “merger” is set to reduce Ethereum’s carbon footprint by 99%.
This may translate to more institutions and capital previously marginalized from the crypto space due to its environmental footprint, and thus, why this event may have profound implications in terms of adoption, pricing, and development.
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Regarding the latter, Buterin celebrated Ethereum’s ability to improve its development speed over the years. After the “merger,” core ETH developers will focus on scalability and building the infrastructure needed for mainstream adoption.