Crypto Weather Forecast - ETH Merged! And NOTHING happened!
Howdy Folks,
It´s hard to not talk about the ETH Merger on a day like today, even though it was a dud-
It´s an anti-climax dude, no big bang no nothing.
There I was happily sitting down with my morning coffee and seeing the clock tik tok for 23 minutes, 23 minutes of growing anticipation.
Waiting on The Merge!
I have been told about that merge ever since I was a little Bitcoin baby. That ETH 2.0 merge would be a turning point in crypto history. Everything would be different after the merge. We would forever talk about the BM(before Merge) and AM (After Merge) period in crypto.
So I was glued to the screen, I mean knowing Devs and how they work and test, everything could go wrong. But at the same time maybe the whole wide world would want to buy this green ETH and finally, the flippening would happen.
And Then What?
And then the counter went to 0, ETH went down on the exchanges and so did ETC, while ETHPoW went down even faster than ETH / ETC combined.
Other than that? Nothing really happened.
Well almost nothing, it seems that the LunarCrush API crashed and I expect that the pause of many exchanges sending and receiving ETH might have caused some minor hick-ups. But that was it.
I so would have loved to write an exciting article about all things that this ETH Y2K would have caused, but three hours into the AM era and nothing to report.
Well, ETH Classis´s hash rate went up 280%, and Raven coin got some new miners because many pre-merge miners still need to pay for their machine so better mine something. But both coins did not see an increase in price since the merge. Most coins are showing slightly red in the aftermath of the CPI numbers. BTW those CPI numbers had a bigger impact on the price than the merger.
As I am here to not only be a pessimist let's look ahead and forecast what this new ETH might do:
ETH might rally harder than Bitcoin as the environmentally conscious investors can now jump on the Ethereum train with a clean conscious. While the big bad Bitcoin still has some dirty carbon footprints.
Still, as the famous No Coiner Johan Cruyff would have said, every upside has a downside and the downside for ETH is that switching to Proof of Stake added centralization. Where BTC is said to be the most decentralized crypto ETH just became much more centralized as Lido owns nearly 31% of the total staking pool, while Coinbase owns almost 15%.
Now many crypto enthusiasts are not big fans of centralizing, but the big money on the sideline probably cares more about the environment. Then there is one more thing, ETH will become deflationary.
Where there used to be ETH mined adding new ETH daily, as of today there will only be added 1600 ETH as a reward for staking from the consensus layer (i.e. Beacon Chain). In the current market that might even out the amount of ETH being burned daily from gas fees, but as soon as the market pulls up there will be more ETH burned than rewarded making the total ETH supply decrease over time.
Bottom Line
In these times of high global inflation, we know how important deflation can be.
In times of global environmental crises, we know how important it is to reduce our carbon footprint.
Even if you yourself are not so worried about both, big financial investors nowadays need to show that they take the environment seriously hence if the money starts flowing again into the crypto-verse. Would the big green boys buy BTC or ETH?
So ETH´s future long-term is looking pretty green to me. Short-term we have seen the effect already because where BTC is still down 70.71% from its ATH ETH which used to always dip deeper is only down 67.48% from its ATH thanks to all the merge news. It is just the market that is down and probably will remain down till JP speaks next Wednesday about what the FED has in store for us in terms of rate hikes.
Personally, I was lucky enough to sell my ETH and ETC with a very minimal profit. I started probably two months ago buying and selling them in preparation for the merge. The volatility allowed me to turn the $100 I started in into $150 mainly thanks to buying ETC below 30 and selling above $40.
Now I am gonna pocket that money and buy next week's dips because whatever the FED says, based on the sentiment we saw on the CPI numbers I expected another dip coming.
The Crypto Weather Forecast is my take on the crypto market, sometimes serious, sometimes sarcastic, often with a wink, and Always Honest.
Thanks for the read and please hit that like button, it's one of the few free things in life!
Post Scriptum
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