Just recently, the Ethereum blockchain went through the most important update in its entire lifetime of development. Despite the fact that many market participants anticipated that following the Merge, the price of ETH would shoot through the roof, things haven’t quite worked out as planned.
Merger Accepted As a Positive Development
The Merge is the last stage in Ethereum’s progression toward a proof-of-stake consensus model (PoS). At this point, the project has been in development for at least three years, and the Ethereum Foundation has highlighted the significance of the project to the blockchain on many occasions.
The Ethereum blockchain is projected to improve as a result of this modification in a number of aspects, one of which is the complete implementation of ETH staking. Another anticipated improvement is carbon neutrality.
It is possible that this might help lower the entire carbon footprint of the blockchain by as much as 99.9%, according to some estimations. Additionally, it is anticipated that the Ethereum Foundation will make certain enhancements to the blockchain in reference to the speed of transactions; however, these modifications may not arrive until 2023 or 2024 at the earliest.
As the Ethereum blockchain continues to become more scalable, it will be in a better position to accommodate the hundreds of decentralized apps (dApps) that are already operating on it. At the same time, many developers who left Ethereum or picked one of the “Ethereum killers” owing to scalability concerns with the blockchain would be motivated to return due to the fact that there would be an incentive for them to do so.
Keeping these factors in mind, the value of ETH should, at the very least over the course of many years, soar. In point of fact, there is some speculation that Ethereum (ETH) would ultimately overtake Bitcoin (BTC), the asset that has maintained its position as the leader in terms of market capitalization. The possibility of Ethereum (ETH) surpassing Bitcoin (BTC) is becoming increasingly plausible as the Ethereum blockchain continues to expand and enjoy greater worldwide dominance.
Successful Merger but Disappointing Price Direction
Despite the fact that the Ethereum Merge has been a major success in terms of development, investors in ETH have been dismayed by the precipitous decline in pricing. Since the Merge was implemented, there has been a 7.25% decrease in the value of ETH in the last day. The current value of the asset’s relative strength index (RSI) is 40.14, which indicates that the buying is still low and is also an indication that investors are not currently motivated to acquire the asset.
It would indicate that macroeconomic variables continue to exert a significant amount of influence over the market. This week, the data for the Consumer Price Index (CPI), a crucial indicator for gauging inflation, was released by the Federal Reserve of the United States.
Data that was presented revealed that the headline inflation rate in the country grew by 0.1% month on month in August, despite the fact that the market had anticipated a decrease in the statistics. In addition, despite the decline in the price of gasoline and the easing of conditions in the housing market, underlying inflation rose by 0.6% month-over-month and 8.3% year-over-year.
Following the publication of the CPI numbers, the Dow Jones Industrial Average had a decline of 2.6% as a direct consequence of the less favorable-than-anticipated findings. The S&P 500 Index and the NASDAQ Index both had losses of 2.9% and 3.6%, respectively. The intimate linkages that the cryptocurrency market has with the traditional stock market have also contributed to a decline in the value of coins.
Price Predictions for Ethereum: What Lies Ahead?
The price of ETH has decreased in line with the general market, which is currently trading at a 2.61% lower value. Ethereum, just like other large-cap cryptocurrencies, has been seeing a consistent price drop.
Even though there are no measures to measure how well the Ethereum blockchain has performed since the Merge, first signs point in a positive direction. Analysts predict that over the course of time, the performance of the blockchain will dramatically improve. This should encourage more developers and users of dApps to make purchases of Ethereum and use it to settle transactions.
In addition, an uptick in market conditions, which is forecast to occur in the near future, ought to contribute to an increase in the price of ETH. When the trend in the market turns positive, ETH, which has a significant market cap, should be one of the coins that benefit the most.
It now has another factor that might contribute to the price going up. In general, it seems like $1,500 would be a fair starting point, especially when looking at the bigger picture.
Final Word
The value of Ethereum is anticipated to skyrocket after the current bear market has run its course. The asset continues to be among the most valuable on the market, and the fundamentals that are generated from the Merge are expected to drive its price even higher.
Since the elimination of Proof-Of-Work, it is projected that there will be a considerable decline in the supply of Ethereum over the next two years. This prediction is based on the fact that the quantity of Ethereum has expanded rapidly over the course of the previous six years.
In light of this, Ethereum will experience an increase in its scarcity, just like Bitcoin does. It has been forecasted by ultrasound.money that by the year 2088, Ethereum will have reduced the current circulating supply by half, bringing the total number of coins to sixty million.
However, what about the subsequent two years? At this time, there are 120.5 million ether tokens available for use in transactions. The next two years should be quite productive for Ethereum, which has just switched to using proof-of-stake rather than proof-of-work.
It is anticipated that the total supply of Ethereum would have dropped down to 116.4 million by the middle of the year 2024. If you take advantage of the current weak market in cryptocurrencies and apply a long-term investing plan to Ethereum, you could be able to realize enormous returns by the year 2025.
Read More
Tamadoge – Play to Earn Meme Coin
- Earn TAMA in Battles With Doge Pets
- Capped Supply of 2 Bn, Token Burn
- NFT-Based Metaverse Game
- Presale Live Now – tamadoge.io
