Ethereum Market Cap Surpasses $200 Billion as ETH Recovers $1,800

The price of the second-largest cryptocurrency by market capitalization broke above the $1,800 level as Ethereum (ETH) surges more than 5% in a day ahead of its upcoming merger upgrade scheduled for September.

Indeed, Ethereum is currently trading at $1,801, up 5.48% in the last 24 hours and 6.78% in the previous week. Notably, over the past 30 days, Ethereum has risen from $1,214 on July 10 to $1,801 on August 8, an increase of 48.35% between the two dates.

Ethereum 30-day price chart. Source: CoinMarketCap

Additionally, with a total market capitalization of $219 billion, Ethereum has added nearly $70 billion to its total value over the past month, according to data retrieved by CoinMarketCap.

30-day Ethereum market cap chart. Source: CoinMarketCap

The Ethereum merger scheduled for the end of September is one of the most anticipated crypto events due to factors such as the predicted bullish impact on the price of the asset.

Based on this, banking giant Citigroup (NYSE:C) believes the upgrade could have several benefits for the blockchain.

According to the study conducted by the bank, once the upgrade is implemented, it could lead to a reduction in energy intensity, turn Ethereum into a deflationary asset and provide a potential roadmap to a more scalable future via the use of sharding.

Citi notes that moving to proof-of-stake (PoS) could also reduce overall Ethereum issuance by 4.2% per year.

Ethereum will become an “institutional-grade global asset”

Notably, since the announcement of the upgrade, Ethereum’s value has shown a positive trend, with the price resisting the market crash to register some modest increases.

Consequently, the market anticipates several developments on the network. A recent report said the merger would work as a catalyst to propel Ethereum into becoming an “institutional-grade global asset.”

The main players are planning their next moves

Elsewhere, the Chainlink (LINK) protocol said it would not support Ethereum proof-of-work (PoW) forks before the merger after advising Ethereum developers and dApp teams “who are not confident of their migration strategy surrounding the merger” to suspend smart contract operations, in order “to avoid unforeseen incidents and help protect end users”.

Some members of the cryptocurrency community vehemently oppose the merger and have even offered a hard fork as a solution to maintain Ethereum’s existing PoW mechanism after the upgrade. At the same time, others, like Ethereum’s second-largest mining pool, f2Pool, have acknowledged that the era of ETH proof-of-work “is coming to an end.”

Amid the mixed sentiment, Vitalik Buterin argued that another fork is unlikely to harm Ethereum “significantly” post-merger, stating, “I don’t expect Ethereum to be really significantly affected by another fork”, minimizing the potential effect of any future hard forks. on the blockchain.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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