Ethereum is the second largest blockchain cryptocurrency in the world. However, the Ethereum blockchain is the most popular platform for countless other cryptocurrency projects. Most altcoins are ERP-20 tokens, meaning they are built entirely on the Ethereum blockchain. This has made ETH one of the safest investments in the cryptocurrency ecosystem.
However, the platform is currently working on new features and protocols to prepare for the future. The next move is to merge the Ethereum Mainnet with the Beacon Chain proof-of-stake system, forever changing how ETH works. The platform is risking everything with the Ethereum 2.0 update, and if successful, it could overtake Bitcoin as the best cryptocurrency in the world.
The Merge - a huge step for the Ethereum network
Ethereum is an excellent network, but its outdated proof-of-work approach prevents it from growing. The network was created years ago when blockchain technologies were still relatively young. The original protocols and features cannot work in today's environment, so Ethereum has put a lot of effort into moving to a proof-of-stake system that will allow for scaling in the future. The so-called "Merge" is about to happen, reducing Ethereum's energy consumption by 99,95%.
However, until the "Merge" actually takes place, we will not be able to know its full effect on the value of Ethereum. If that fails, the price of ETH tokens could drop sharply. All ETH token holders and traders will suffer as tokens could fall below the $ 800-1000 range. Considering that Ethereum is the network of choice for most DApps and top-tier blockchain projects, such a massive drop in price would result in huge losses.
As of this writing, ETH is trading at $ 1.834. It is still the second largest cryptocurrency by market capitalization and has been climbing 2,01% in the past 24 hours. The price is expected to remain strong for another two to three weeks, after which it is expected to explode or take a noticeable decline.
D-Day on September 15th
After years of stable prices and massive growth, the Ethereum network is about to redefine its entire structure, moving to a new protocol called ETH 2.0. The update, also known as "The Merge", will take place on September 15, 2022. The Ethereum Mainnet is expected to merge with the Beacon Chain, creating a new proof-of-stake system in place of the current proof-of-stake protocol. work.
In addition to reducing network power consumption to just 0,05% of the previous one, the merger will also improve scalability and prepare the entire network for future upgrades. In other words, the price of ETH tokens will change sharply on September 15th, regardless of the outcome.
The move to ETH 2.0 will include the halving, which will lead to a recovery later. However, the ETH may experience a slight drop during or shortly after the melting process. Token holders who sell their ETH before the merger will likely be happy with their decision for a few weeks, but once deflation kicks in, the price will likely rebound and even surpass previous all-time highs. As a result, Ethereum could become the highest-rated cryptocurrency in the world, and those who keep their tokens could make high gains. However, other projects are likely to post high earnings by the end of the year, with tamadoge ahead.
