Will Ethereum Price Drop Dramatically After The Merge?
Will Ethereum Price Drop Dramatically After The Merge?
Although the quantity of Ethereum staked on the Beacon Chain has hit new highs, some people are afraid about a big sell-off following the Merge.
According to Glassnode, the amount of ETH staked in the Beacon Chain smart contract has surpassed $12.76 million. In May, it announced that 398,000 unique validators staked, with another 19,800 staked and coming online.
The amount of staked ETH, according to Glassnode, is 10.73% of the total supply. The value of the assets is estimated to be roughly $23.3 billion at current prices. Other sites give slightly different numbers, with the Ethereum Launchpad dashboard indicating 13.36 million ETH staked, or 11% of the entire supply.
In any case, the rise in staking and validating is a vote of confidence for the Ethereum ecosystem in the midst of a bear market filled with negative emotion and FUD.
The much-anticipated Ethereum Merge is scheduled to start in August, but some industry observers are concerned. The Merge will stop proof-of-work mining and switch the network to proof-of-stake, resulting in a 99% reduction in energy consumption.
Many in the crypto world believe that after the Merge occurs, all of this staked ETH will be sold to markets. For a variety of reasons, this is unlikely to happen.
- First, the staked assets will not be distributed immediately after the Merge since it is necessary to safeguard the network and ensure consensus.
- Second, the ETH will be released in stages rather than all at once, allowing it to trickle back into markets instead of flooding them.
Fundamentals are rarely included in pricing during negative markets, so it’s unlikely that ETH prices would rise as a result of the Merge. Some industry analysts believe the Merge will be beneficial to Ethereum prices, but only time will tell.
The price of Ethereum is presently $1,826. The bears, on the other hand, have complete control, as the asset has lost 10% in the last two weeks and 34% in the last month. It is presently down over 63% from its all-time high in November.
The previous bear market saw ETH drop 94% to $85 in December 2018, indicating that the world’s second-largest crypto asset might be in for a lot more pain.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Hazel
CoinCu News
Author
Will Ethereum Price Drop Dramatically After The Merge?
Although the quantity of Ethereum staked on the Beacon Chain has hit new highs, some people are afraid about a big sell-off following the Merge.
According to Glassnode, the amount of ETH staked in the Beacon Chain smart contract has surpassed $12.76 million. In May, it announced that 398,000 unique validators staked, with another 19,800 staked and coming online.
The amount of staked ETH, according to Glassnode, is 10.73% of the total supply. The value of the assets is estimated to be roughly $23.3 billion at current prices. Other sites give slightly different numbers, with the Ethereum Launchpad dashboard indicating 13.36 million ETH staked, or 11% of the entire supply.
In any case, the rise in staking and validating is a vote of confidence for the Ethereum ecosystem in the midst of a bear market filled with negative emotion and FUD.
The much-anticipated Ethereum Merge is scheduled to start in August, but some industry observers are concerned. The Merge will stop proof-of-work mining and switch the network to proof-of-stake, resulting in a 99% reduction in energy consumption.
Many in the crypto world believe that after the Merge occurs, all of this staked ETH will be sold to markets. For a variety of reasons, this is unlikely to happen.
- First, the staked assets will not be distributed immediately after the Merge since it is necessary to safeguard the network and ensure consensus.
- Second, the ETH will be released in stages rather than all at once, allowing it to trickle back into markets instead of flooding them.
Fundamentals are rarely included in pricing during negative markets, so it’s unlikely that ETH prices would rise as a result of the Merge. Some industry analysts believe the Merge will be beneficial to Ethereum prices, but only time will tell.
The price of Ethereum is presently $1,826. The bears, on the other hand, have complete control, as the asset has lost 10% in the last two weeks and 34% in the last month. It is presently down over 63% from its all-time high in November.
The previous bear market saw ETH drop 94% to $85 in December 2018, indicating that the world’s second-largest crypto asset might be in for a lot more pain.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Hazel
CoinCu News
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