Ether (ETH) price surges after ethereum completes final testnet merge

Ethereum is the currency

Jakub Borzicki | NurPhoto | Good pictures

Ether The developers rose to a two-month high after the successful completion Final dress rehearsal A major update is expected to happen next month.

According to data from CoinMetrics, the world’s second largest cryptocurrency reached a price above $1,927 at 8:20 am on Thursday. This is its highest level since early June and is up 13% in the last 24 hours.

On Wednesday, Ethereum held its final dry run “merge,” a major event that is expected to be faster and more energy-efficient. One of Ethereum’s test networks, called Goerli, simulated a process similar to the main network’s implementation in September. Testnets allow developers to experiment and make necessary changes before updates are rolled out to the main blockchain.

The merger will see Ether’s underlying blockchain transform from a proof-of-work system to a more efficient model called proof-of-stake. Proof-of-work consensus mechanisms rely on crypto miners to verify transactions. On the other hand, proof-of-stake networks require validators to hold a certain amount of tokens to participate. The event, which has been delayed several times, is now expected to take place on September 19.

Once finalized, the upgrade is expected to speed up transactions on the Ethereum network and make it more energy-efficient, which supporters hope will address criticisms of it. Environmental impact of cryptocurrencies. This has led some investors to bet that Ether could eventually steal Bitcoin’s thunder. Bitcoin has lost some ground to other tokens in recent years, with its market dominance falling from nearly 70% in early 2020 to below 40%.

According to IT expert Kaj Burchardi, whether Ethereum eventually dethrones Bitcoin as the crypto king is “highly irrelevant” because the two are not directly competing.

“The purpose of why you’re buying bitcoin, from a mindset perspective, what you’re actually trying to do is fundamentally different than if you’re using Ethereum,” said Burchardi, managing director of BCG Platinion, the IT-focused division of Boston Consulting. group.

“Ethereum … is not a use case. It offers possibilities to implement good use cases like NFTs [nonfungible tokens] and banking products on one platform. Bitcoin is a use case.”

Following the success of the merger test, Ether led a broader rally among digital assets on Thursday, with the combined value of all cryptocurrencies surging by more than $70 billion to $1.2 trillion in a single day. Bitcoin Up 6% at $24,507, hitting a nearly two-week high, while Finance BNP The token was 3% higher at $330.

However, investors generally followed cryptocurrencies The Catastrophic Implosion of $60 Billion Stablecoin Terra, which sent shockwaves through the crypto market and helped trigger the collapse of investment firms Celsius, Three Arrows Capital and Voyager Digital. The entire crypto market has shed nearly $2 trillion since peaking at over $3 trillion in November.

— CNBC’s MacKenzie Sigalos contributed to this report

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