Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
As noted by Bloomberg Ethereum a decentralized open-source blockchain with smart contracts functionality. presents certain indicators that are balancing the scales in its favor when compared to Bitcoin, and anticipates that once it reaches The Merge, institutional interest in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. could be felt in the market.
- According to Bloomberg, the demand for ETH will grow among investors
- The Merge will arrive in September and will change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. certain properties in Ethereum
- It will be implemented Proof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. and this could improve the outlook for ETH
- Investors think that ETH could surpass BTC in the markets
A new report published by Bloomberg points out that, once the expected update called theThe Merge in the Ethereum network, the cryptocurrency ETH will have the potential to become a highly sought-after asset among large international institutional investors.
Ethereum has the potential to become a sought-after investment asset
According to the report of the news agency Bloomberg titled“Booms, Busts and Bitcoin”The Merge will bring with it a series of events that will turn the perception of what we have about ETH as an investment asset, being able to become one of institutional grade at international level. In this regard, they point out that the change of the consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. algorithm a process or set of rules to be followed in problem-solving or calculation operations, usually by a computer. will be the aspect that will set the tone.
According to some metrics presented by Bloomberg, Ethereum has outperformed on several key adoption metrics, which are highly correlated with price, number of active users, addresses of wallets with funds, and transaction volume, even scoring better than Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. in certain casesL
- For addresses with a balance in ETH, the report details that it is currently at record highs, doubling that seen on the Bitcoin network.
- On-net transactions, this metric has remained solid so far this year, only losing 7% of transfer volume, regardless of the price drop seen in recent months.
- With regard to active addresses, this indicator has grown by 113% in the last three years. Meanwhile, in the case of Bitcoin they fell by 30%.
- And finally, the trade volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of ETH in July reached a 50% parity with that of Bitcoin, the first time this has happened so far this year. In this regard, the data firm Kaiko indicates that this is due to the large volumes seen in the main markets (Spot and derivatives).
Likely to outperform Bitcoin
While for many people Bitcoin is the reigning cryptocurrency within the ecosystem, more and more people are expecting a major upswing for Ethereum once it arrives.The Merge for the network a network refers to all nodes in the operation of a blockchain at any given moment in time. sometime next September.
Perhaps the most concise explanation was presented by investor Raoul Pal, who summarizes this position in three elements:
- By changing the consensus algorithm toProof-of-Stake, la comunidad de Ethereum ya no tendrá más mineros que operen vía Proof-of-Work, who will not be obliged to sell the products they ETH earned on the downside to pay for the operating costs of supporting the network.
- This change toProof-of-Stake will also generate more interest in staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. on the network, which will take a lot of ETH currently circulating in exchanges out of circulation.
- As supply shortens over demand, this will also cause liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. to become tight and thus lead to an organic increase in price. It also highlights that there will be very little ETH to finance projects DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. / CeFi.
According to Pal and many other analysts, these aspects and many others can turn ETH en un activo de inversión cada vez más demandado, el cual podría incluso superar a Bitcoin en los principales mercados. Sin embargo, aún queda esperar a que llegue la actualización y ver como evoluciona el mercado una vez que la red de Ethereum comience a operar bajo estas nuevas condiciones.
- For investor Raoul Pal, Ethereum could overtake Bitcoin once The Merge arrives.
- Ethereum: As The Merge approaches, one miner the term “miner” can refer to both the person doing the mining and the device that is used to mine crypto. proposes fork to conserve PoW
- Michael Saylor isn’t convinced about Ethereum, only has eyes for Bitcoin
Version by Angel Di Matteo / DiarioBitcoin
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