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ether (CRYPTO: ETH) tended to be bearish in 2022. So far it has fallen by 40%, well above the average cryptocurrency. Historically, ETH was one of the stronger performing cryptocurrencies out there. Since its launch in 2016, it has almost always outperformed its performance. Bitcoin, As a result, the market capitalization between the two coins has narrowed. However, this year has deviated significantly from the long-term trend. Thanks to the decline of the NFT epidemic, the main incentive to buy Ether has been removed from the market. Currently, ETH is largely left to traders, and demand for tokens is much lower than at the end of last year.
As a result, the demand for Ether has declined significantly. When a marketplace is depleted, the value of tokens used only in that marketplace is reduced. This is exactly what happened with Ether and NFT. But before we get to Ether, keep in mind that there are also optimistic reasons. 2022 was a quick response to ETH in terms of recruitment, but it will be a great year in terms of technical upgrades. This year, we are making drastic improvements to the blockchain and are promised to make ETH faster than ever. This article describes future upgrades and how fast Ether can be.
2022 Ethereum blockchain upgrade
In 2022, the Ethereum Foundation is rolling out several upgrades to the Ethereum blockchain. The changes include:
- Support for up to 100,000 transactions per second (TPS)
- Enhanced security
- Improved data storage and transfer
- Merger of Mainnet Ethereum and Beacon Chain
Together, these upgrades make Ethereum faster, safer and more environmentally friendly. It also runs on the Ethereum blockchain, which makes Ether faster. In the next section, we’ll look at exactly how fast Ether will be as a result of the upgrades that blockchain will get this year.
How is TPS converted to actual transaction speed?
As mentioned above, the Ethereum 2022 upgrade will go from the current 15 to 100,000 TPS. This seems like a big improvement. However, TPS is not exactly the same as the actual transaction speed. In reality, the speed of cryptocurrencies depends on:
- Level of network activity
- Number of blocks mined daily
- Transaction confirmation time
The way all these factors interact can be complicated. There is no direct relationship between TPS and transaction time. However, if the blockchain supports more TPS, tokens will enjoy faster transactions and everything else is the same. Therefore, ETH should be faster a year ahead.
Is that enough to bring the tokens back to record highs?
I don’t know yet. The declining popularity of NFTs was a major catalyst for the rise in ETH prices last year. If they do not become popular again, ETH prices can remain depressed for some time. On the other hand, this year’s blockchain upgrade looks really promising. Therefore, there is at least one optimistic reason.
