The Ethereum (ETH) Merge updates triggered optimism within the ecosystem. Nevertheless, Ethereum has lost the $1,600 mark during this publication as the Merge hype eases into the weekend.
Meanwhile, the latest relief rally saw Ether outshining the world’s leading crypto, with ETH surging 19.07% over the past seven days. However, the question is whether the top altcoin maintained strength until the September Merge release?
Answer from ETH’s Ongoing Performance
Ethereum enjoyed a resurgence this week while traversing the bear market. Investors witnessed a swift surge beyond $1,600 following dramatic declines beneath $1,000 in June. However, the Merge official release date (September) impacted the altcoin’s trajectory.
The crypto community expects the transition to benefit the network. IntoTheBlock’s analysis shows the Merge would welcome increased profitability on the Ethereum ecosystem in the upcoming months.
Ethereum will likely be the leading deflationary currency as inflation plagues the worldwide economy. Analysts expect Ether issuance to decline by 90% following the Merge. The last year’s EIP-1559 release led to the burning of 80 – 85% of transfer fees. The anticipated Merge would likely mean more ETH burning than issuing.
For now, staking Ethereum produces 3.9% in yields, and analysts expect an uptick to 6% – 7%. Increased staking yields will welcome more ETH staking. That would translate to heightened security as it would be expensive to get 51% of the staked ETH.
Surging yields will translate to increased returns for staking providers like Lido. Individuals staking Ethereum won’t withdraw cash until six to twelve months following the Merge. That scenario will see staked Ether on Lido growing.
Meanwhile, the situation might completely change for investors if macroeconomic conditions continue to deteriorate. However, trader optimism stays high on ETH amidst massive expectations with the awaited Merge release.
On the other hand, bears show their resilience, triggering slight downside price actions over the past day. The global cryptocurrency market value lost 3.35% over the past 24 hours to $1.01 trillion.
Meanwhile, the crypto market volume increased by 5.17% within the last 24 hours to $65.94 billion. Also, Bitcoin seems to surrender the $22K level, hovering around $21,975 during this publication.
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