The promise of migration to a Proof of Stake network for Ethereum is positively impacting price performance. For the first time in two weeks, ETH has crossed the $3,000 mark and is now outperforming Bitcoin.
While talks about the transition have been going on for a long time, recent developments on the networks show that the event is a matter of months.
Investors’ optimism about Ethereum is growing
When completed, it will significantly reduce power consumption on Ethereum by 99%, and it would also help make the network more scalable and cheaper to transact.
“After the merger, the amount of ETH issued is expected to fall by 90%, which would lead to similar fees to reduce the supply of Ether by as much as 5% per year,” IntoTheBlock reported.
This has led to renewed optimism in Ethereum among investors pouring into the coin en masse. According to data on Twitter sentiment about the coin, there are more than 62,000 positive tweets about the Merge and Ethereum in general.
According to available CryptoSlate data, the second largest crypto asset by market capitalization is one of the best performing digital assets in the past seven days in the top 10 cryptocurrencies by market capitalization.
The value is up more than 15% and has crossed the $3k mark for the first time in two weeks. To put it in context, Bitcoin’s price rose 6.5% over the same period.
However, it should be added that Bitcoin’s performance in 2022 is currently better than Ethereum’s. BTC has lost about 10% of its value while ETH has lost 20%.
Analysts Share Opinions on Recent Development in ETH
Speaking about Ethereum’s recent upward performance, FundStrat wrote in its Crypto Daily Report that the crypto asset “seems quite usable from a trading perspective”. This can help drive the asset’s price even higher.
On the other hand, IntoTheBlock recently revealed that more than 180,000 units of Ethereum were withdrawn from crypto exchanges on March 15. The last time such a high amount was withdrawn, the asset’s value increased by 10% within 10 days.
Largest outflow in 2022 – more than 180k $ETH was withdrawn from centralized exchanges within one day
-Last time such a size of ETH exchanges left was in October 2021, prior to a 15% price increase within ten days
-190k ETH was also deposited in Lido’s stETH liquid staking pic.twitter.com/wayu2nvRlR
— IntoTheBlock (@intotheblock) March 18, 2022
The crypto analytics firm also believed that reward wagering for Ethereum would be higher than the US consumer price index. According to the company, the compensation earned by miners would now be earned by strikers. This would invariably drive up the rewards to about 7% to 12%.
According to a previous report from CryptoSlate, the Merge is expected to take place in June.
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