We here at Metaverse News are aware that you are well-versed in the crypto world, but we can see that we have many new readers daily. Therefore, to honour and cover the approaching Ethereum merge, we are publishing a series of articles that delve a little deeper into the topic. What is ETH and what does the upcoming merge mean?
It is extremely essential to make it clear that I, Annika, am not a financial counsellor, that I do not have an academic background in Finance, and that the aforementioned are only my own personal concerns and have nothing to do with Metaverse News or the opinions that Metaverse News shares.
A look at some of the factors that might have an impact on the price of Ethereum
In the middle of July 2022, the value of one coin of ETH, which is the cryptocurrency that is native to Ethereum, was roughly $1,500. This was nearly the same value as it is now.
There are a few things that might push it higher or lower, including the following:
Expanding market downturn
The decline in the value of the cryptocurrency market during the first half of 2022 was rather ordinary when seen in comparison to the performance of other asset classes. Concern and fear have been stoked by a variety of geopolitical and socioeconomic crises, including the continuous epidemic of the Covid-19 virus, skyrocketing inflation, and the conflict between Russia and Ukraine. The market suffers when there is uncertainty, and this has been the case in the cryptocurrency area as well.
Following the Ethereum Merge
Testing for the new proof-of-stake system on the Ethereum blockchain has begun, and excitement is growing for the so-called Merge, which will take place when the Ethereum mainnet (the original blockchain) makes the shift some time in 2022. This event is referred to as the Merger. However, Ethereum’s performance in 2022 has not yet lived up to the expectations that were set for it. This is just halfway through the year. Potential investors are waiting to observe how consumers and businesses react to the long-awaited changes, as well as how well individuals adjust to them, before they decide whether or not they want to invest.
There are really dozens of alternative cryptographic currencies, despite the fact that the media tends to focus on Bitcoin and Ethereum. The database known as CoinMarketCap tracks the prices of around 10,000 distinct digital currencies at any one time. Others have established tokens for more specific usage, while many creators of cryptocurrencies want to displace Bitcoin as the dominant cryptocurrency. Nevertheless, given that the market is in a state of constant flux, any currency, new or old, has the potential to develop into a significant participant in the market tomorrow. Think about the fact that a few years ago, nobody would have wagered that the once-omnipresent BlackBerry would become less popular. This is only one example that demonstrates how rapidly the technology environment might shift.
Greater concentration on the part of the regulatory apparatus
It is reasonable to assume that by the time 2022 comes to a close, the cryptocurrency industry will have developed from a fleeting fad into a $3 trillion asset class. It’s possible that the early stages of a new investment product will feel more like the Wild West than anything else, but if it becomes successful, regulators will almost certainly start looking into it.
Some of the highest senior government officials in the United States, including as the Chairman of the Federal Reserve, Jerome Powell, and the Chairman of the Securities and Exchange Commission, Gary Gensler, have expressed public concern with the lack of regulation pertaining to cryptocurrencies. In the meanwhile, President Joe Biden signed an executive order in March of 2022 asking the Treasury Department to draft new rules. Therefore, it is feasible that the laws and regulations that govern cryptocurrencies may evolve over time, which may or may not impede the growth of Ethereum and its competitors. However, it is probable that this could happen.
After everything is said and done, the price of Ethereum (ETH), like the prices of the vast majority of cryptocurrencies, has seen tremendous fluctuations, going from a record high in 2021 to a loss of two-thirds of that value by the middle of 2022. There are a number of factors that might influence the price of the cryptocurrency, and one of them is Ethereum 2.0. This software update will make the Ethereum network more scalable and efficient, but it is only one of those factors. As a consequence of this fact, a number of industry experts predict that the second most valuable cryptocurrency, Ethereum, might soon overtake Bitcoin in terms of market value. The price of Ethereum, along with the price of the other cryptocurrencies on the market, may be pulled down by a bear stock market as well as greater competition in the cryptocurrency industry and increased regulation.
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