- Ethereum ((((ETH-USD) Increased by 41.8% from the low of $ 2,199.92 on January 24th to over $ 3,140 as of March 26th. Still, it has fallen 16.7% since the beginning of the year.
- Ethereum is about to move to a proof of stake transaction verification system and is moving to stop ETH-USD mining.
- It will probably have a very positive effect on the long-term price of Ethereum.
Source: shutterstock
Ethereum ((((ETH-USD) Is approaching the point where it will stop accepting Proof of Work (PoW) as the primary validation system for transactions. At that time, Ethereum will move to the Proof of Stake (PoS) system as a mechanism to validate Ethereum transactions.
In fact, recently, the Ethereum Foundation discussed this move in a recent blog post. The Foundation, which supports the development of cryptocurrencies, has successfully released the latest merge test net, Kiln, to developers.
website U.Today The Foundation reported that the merge test would continue on all hands-on decks. If no significant issues are found, the kiln will be the last new public testnet to be launched.
The online site reported that if no significant issues were found, the kiln would be the last new public testnet to be launched.
Whales continue to buy Ethereum
according to U.TodayMany “whales”, which are rapidly gaining authority over Ethereum issues, continue to acquire more Ethereum tokens.For example, it Analytical company Santiment By tweet About whales increasing their stake in Ethereum.
“The addresses of the top 10 whales in Ethereum have accumulated 4.3% more of their total supply than they did a year ago today,” he said. U.Today..
I think the two developments are probably the same. For example, Ethereum’s largest owners probably believe that crypto will become popular as it moves to Proof of Stake.
First, when the PoS transition occurs, funds that believe in the development of green crypto will be attracted to ETH-USD. This is because PoS does not involve crypto mining and the extensive use of power for verification and “mining”. This is currently related to Ether mining.
Institutions buy Ether with the transition
Certainly, this is the writer luck I believe in magazines. They recently wrote an article titled “Ethereum blockchain is approaching a major turning point that could boost Ethereum’s market value over Bitcoin.” The magazine referred to the latest kiln test and said it “determines its future.”
Importantly, Ethereum is a leader in decentralized finance (DeFi) and non-fungible tokens (NFT). Once migrated, this Proof of Stake upgrade “may dramatically improve your reputation.”
luck This treatise is based on the theory that institutional investors will be more open to buying Ether Tokens. This is due to a 99% reduction in power usage in transaction validation. That’s what happens in the transition from mining to PoS. This in essence seems to make ETH-USD more attractive to these institutions.
In fact, there is evidence that Ethereum’s staking yield will be 10% to 15% once the PoS system is enabled. Coin desk.. This is much higher than financial institutions can make in the bond market.
But it’s not clear yet Fortune Claims that Ethereum will overtake Bitcoin ((((BTC-USD) It actually happens in the evaluation.
What Investors Should Do at Ethereum
ETH tokens are already rising in anticipation of a merge and migration to PoS mid-year. The latest kiln tests seem to be on track and there seems to be no major hurdle to complete the transition after that.
This means that now is a good gateway for enterprising investors in the crypto market. Given that Ethereum is the second largest cryptocurrency, its popularity could skyrocket once a merger takes place.
As a result, ETH-USD is expected to begin to rise as we approach the point where the transition occurs. As a result, I think Ethereum will start approaching prices at the end of last year.
At the date of publication, Mark Hake did not hold (directly or indirectly) the positions of the securities described in this article. The opinions expressed in this article are those of the authors covered by the InvestorPlace.com Publishing Guidelines.
