Optimism about the upcoming “Merge”, which senior developers have tentatively scheduled for September, has been cited as a key driver of the recent rally, though an upturn in macro risk appetite that has given most cryptocurrencies a boost this week has also helped. As long as the Fed next week isn’t too hawkish and US corporate earnings remain broadly upbeat, there is no reason why macro sentiment can’t remain robust in the near future, and why Ethereum can’t continue higher.
Ethereum Co-founder Buterin Previews “Merge” and “Surge” at Paris EthCC
Ethereum co-founder Vitalik Buterin gave a talk on Thursday at the Ethereum Community Conference (EthCC) in Paris where he previewed his expectations for the upcoming “Merge” and following “Surge”. The “Merge” will see the Ethereum blockchain transition from an energy-intensive Proof-of-Work consensus mechanism to Proof-of-Stake by September, according to a tentative timeline recently laid out by senior developers.
According to Buterin, work on the transition to Proof-of-Stake, which some are referring to as Ethereum 2.0, is 90% complete. Meanwhile, Buterin explained that the “Surge” will see the Ethereum network updated to improve its scalability. “At the end of this road map… Ethereum will be able to process 100,000 transactions per second”, Buterin claimed. At present, the network can only manage up to around 30 transactions per second.
“Ethereum Killers” Will Fail, Says Blockdaemon’s Ethereum Ecosystem Head
The head of Blockdaemon’s Ethereum ecosystem Freddy Zwanzger told Cointelegraph during this week’s Ethereum Community Conference (EthCC) that he expects Ethereum to retain its position as the leading smart contract platform. “All the Ethereum killers from back in the day didn’t succeed, and I don’t expect them to succeed at all”, he added. Blockchain projects such as Cardano, Solana and Polkadot, are often referred to as so-called “Ethereum killers”.
Ethereum to be Deflationary Post-Merge
“ETH will become deflationary following the Merge, IntoTheBlock’s head of research Lucas Outumuro said on Twitter on Friday. According to Outumuro, the token’s net annual issuance will likely fall to between -0.5% to -4.5%, depending on network fees.
$ETH will become deflationary following the merge
ETH’s net issuance is likely to range between -0.5% to -4.5% depending on network fees
Here is a projection of what that would look like based on 2022 historical data pic.twitter.com/KdWq072Mbz
— Lucas (@LucasOutumuro) July 22, 2022
A reduction in ETH supply should theoretically increase its price in the long run, especially if the network’s mainstream adoption continues to grow in the years ahead.
Though it has pulled back sharply in recent trade to the $6.50 area from an earlier attempt at touching the $7.0 level, ApeCoin (APE) continues to trade with substantial gains on the week of over 30%. Indeed, according to CoinMarketCap, the cryptocurrency is the best performer in the top 50 by market capitalization, having gained over 17.5% in the last 24 hours alone.
ApeCoin’s bull run this week began on Monday when it surged above a downtrend that had been capping the price action since late June and above resistance in the $5.20 to $5.70 area. It then consolidated on Tuesday and Wednesday on either side of $6.0, before powering higher on Thursday and into Friday towards $7.0. Bulls now have their sights set on a test of an area of support turned resistance around $7.50. Above that, there is very little to stop the cryptocurrency from surging back to $10 per token.