Why “The Merge” Is Not Priced In, Says Ethereum Inventor Vitalik Buterin
July 28 2022 - 11:34AM
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Ethereum and the crypto market slightly recovered some gains after
the Federal Reserve (Fed) announced a 75-basis point (bps) interest
rate hike. There was no surprise from the financial institutions,
and the second crypto by market cap might be able to extend the
bullish trend without external distractions. Related Reading
| TA: Bitcoin Price Restarts Increase After Fed Rate Hike But
Resistance Intact At the time of writing, Ethereum (ETH) trades at
$1,640 with an 11% profit in the last 24 hours and a 7% profit over
the past week. The cryptocurrency has reclaimed its position as the
best-performing asset in the top 10 by market cap. In an interview
with Bankless, the inventor of Ethereum spoke about what could be
the most bullish milestone for this blockchain since its inception:
“The Merge”. The event that will complete ETH’s migration into a
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 “The Merge”
is already priced-in, meaning its impact is currently reflected on
ETH’s price, others believe the opposite. Buterin himself is
amongst the former, he believes “The Merge” is not priced-in from a
market and psychological standpoint. The positive impact of this
event will have implications with the potential to ripple across
the entire Ethereum ecosystem. These effects will kick in when “The
Merge” has been deployed on the mainnet. Buterin said: The Merge is
looking more and more in the review mirror. It’s looking more and
more like “hey, this things is going to actually happen and when it
happens I expect (developer’s) morale is going to go way up (…). I
basically expect that “The Merge” is not going to be priced-in, by
which I mean not just in market terms, but in psychological, and
narrative terms (…). What “The Merge” Could Spell For The Price Of
Ethereum Once “The Merge” has been implemented, Buterin predicts
that Ethereum will change a “lot of minds”. This could potentially
hint at the surge in the adoption of this network’s ecosystem.
There has been a lot of talk about cryptocurrencies and their
alleged negative impact on the environment. “The Merge” is set to
reduce Ethereum’s carbon emissions by 99%. This could translate
into more institutions and capital previously sidelined from the
crypto space because of its environmental footprint thus, why this
event might have profound implications in terms of adoption, price
appreciation, and development. Related Reading | TA: Ethereum
Surges 15%, Why ETH Could Climb Above $1,700 On the latter, Buterin
celebrated Ethereum’s capacity to improve its development speed
across the years. After “The Merge”, ETH core developers will focus
on scalability and building the infrastructure needed for
mainstream adoption.
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