The cryptocurrency industry has seen one of the most significant events finally happening after long waiting: Ethereum merge. This merge is being recognized as a landmark event in crypto history. It can, as experts say, boost the prices of crypto and even change the scenario of the crypto industry in the future.
Numerous people have invested in crypto in recent months, and all of them, including experts, were eager to know when is Ethereum merge is happening. Ethereum merge delay was something that kept every investor curious. The final Ethereum merge date was September 15, and it officially happened at 6.43 am local time.
What does merge mean?
Now it’s time to understand what merge means. Ethereum merge is an upgrade to the Ethereum blockchain, which powers non-fungible tokens and other innovations in the crypto ecosystem. The transactions taking place on the crypto platform, the proof-of-work as it is called, will be more validated with this merge, creating a better method for it.
The Ethereum network houses the cryptocurrency ecosystem of $60 billion, including NFTs, cryptocurrency exchanges, marketplaces, lending companies, and many other apps. The merge will make the network more secure, although it may not speed the network up or lower the transaction costs with immediate effect.
The CEO and founder of Osprey Funds have simplified the theory. He compared the transition with dial-up modems being upgraded into fiber optics, allowing the internet to offer various things like video and music streaming.
Proof-of-stake
The blockchain has become proof-of-stake from proof-of-work. These algorithms are used so that the users can add new transactions and keep them recorded on the blockchain network.
The proof-of-work system needs immense energy to power the computers which solve complex mathematical equations for validating transactions.
After the merge of Ethereum happened, the proof-of-stake system will need the users to have their stake only on the blockchain network. This model is likely to use the least energy.
Impact of Ethereum Merge on the Investors
The top crypto investors were watching the merge because it would impact them long-term. As the merge has been made after adequate research and groundwork, it will likely help the investors by upgrading the crypto ecosystem. Although reducing energy consumption is one of its immediate effects, it can make the crypto environment more user-friendly.
The carbon emissions are reduced by 99% after the merger. This can attract environmentally conscious people to invest in crypto. Many people were hesitant to invest earlier, thinking about the negative impact of crypto transactions on nature.
If an investor holds Ether, a cryptocurrency that is used most after bitcoin and the native currency of Ethereum, he has nothing to do with this merge. It should be re-verified if you get a message from a crypto app regarding any new recommendation or instruction. Ethereum Foundation has warned investors about this.
Impact on Ether Price
Nevertheless, the Ethereum merge price can affect the Ether price. Lower fees of the proof-of-stake system and quicker transactions may attract more users. More investment may lead to lesser ether supply, experts assume. Thus, individual coin value may increase, attracting new investors.
After a record price hike in November, recent days have seen the crypto prices drop significantly. Ether outperformed bitcoin while the news of the merger was coming in. Crypto fans hope to boost Ether’s price after the merger.
Conclusion
Prices of all the crypto assets are likely to increase in the long course after a successful Ethereum merge, think the experts, not only Ether. They think it may also positively impact bitcoin prices, as the top crypto investors will be more confident about the class of crypto assets. However, the crypto experts suggest the investors not take a move seeing the early trends. They expect more growth in the Ethereum blockchain in the next few years, and only the actual assessment of the merge may be done correctly.
