Ethereum Might Overtake Bitcoin Following the Merge
2022.07.25 21:25
Ethereum Might Overtake Bitcoin Following the Merge
- After Ethereum’s impending Merge, the altcoin might unseat BTC as the most influential cryptocurrency.
- The Merge is an update that has been in the works for quite some time and will finish Ethereum’s shift from proof-of-work (PoW) to proof-of-stake.
- The cryptocurrency’s value is $1,535 at press time, down by 4.5% in the previous 24 hours.
A significant number of individuals are under the impression that after Ethereum completes its impending switch to a proof-of-stake (PoS) network, it will be in a position to unseat Bitcoin (BTC) as the most influential cryptocurrency.
The Merge is an update that has been in the works for quite some time and will finish Ethereum’s shift from a proof-of-work (PoW) system to a proof-of-stake one. It is anticipated that this change would lower the amount of power used for each transaction, resulting in a reduced overall carbon footprint.
For more than a decade, Bitcoin maintained its position as the most valuable cryptocurrency. However, in recent years, Bitcoin’s value has been flipping rapidly, which has caused investors to feel uneasy.
Why ETH will flip BTC:
There are 900 BTC mined per day. At current prices, that’s ~$20mm to miners daily
Let’s assume miners sell 90% to cover costs. That’s ~$18mm in sell pressure *every single day*
Meaning, without ~$18mm of new daily buy pressure, BTC price goes down
(1/8)
— VivekVentures.eth (@VivekVentures) July 23, 2022
The term ‘flipping’ refers to the hypothetical moment at which Ethereum’s market capitalization surpasses that of Bitcoin, hence establishing Ethereum as the largest cryptocurrency.
As Ethereum continues to navigate its way through the bear market, this week has seen a recovery in the cryptocurrency’s price. After being confronted with spectacular lows below $1,000 in June, investors saw a stunning rally that surpassed $1,600.
However, the launch date of Merge, which would be in September, has undoubtedly affected the trend of the cryptocurrency. According to statistics compiled by market aggregator CoinMarketCap, the value of the alternative cryptocurrency is now $1535 at press time, reflecting a decrease of 4.5% over the last 24 hours.
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