are betting on ethereum’s revamp to help thaw out the market’s more than two-months-long crypto winter.
The Merge will be the most important event in the crypto space this year by far, said Vance Spencer, co-founder of venture capital firm Framework Ventures. “If you think about how crypto markets usually move, the biggest event is usually bitcoin halving, cutting supply of bitcoin in half,” he said. “Here, we have the supply of ethereum getting cut by 90% in one moment.”
Ether holders, who will become the blockchain validators after the upgrade, are also more likely to hold on to their ether rewards and stake them for higher yields, as opposed to miners who tend to sell their mined ether to cash out or cover operational costs, further reducing the supply of the currency.
Ethereum could also face less selling pressure compared to bitcoin, especially if a slump in prices triggers another round of sell-offs among cash-strapped bitcoin miners that have large holdings. Public mining companies such as Riot Blockchain started selling their mined coins for the first time earlier this year.
A potential security threat to ethereum’s beacon chain earlier this week could also push back the timing of the Merge. The chain, which is key to introducing the new proof-of-stake mechanism, underwent a blockchain reorganisation last Wednesday. Ether plunged as much as 11% on Thursday before paring losses at around $1 843, well below its $2 000 benchmark.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asian stocks rise to three-week high on optimism as dollar battlesInvestors bet on an eventual slowdown in US monetary tightening, albeit after sharp hikes
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: BISouthAfrica - 🏆 34. / 51 Read more »