The Ethereum Merge is the most critical aspect of the ETH 2.0 upgrade, since it will convert from a proof-of-work to a proof-of-stake system.

The move from proof-of-work to proof-of-stake consensus is the focus of the upgrade. The improvement, as previously reported, has been postponed until the end of 2022, with no specific deadline in sight.

The world’s second-largest cryptocurrency was meant to be weeks away from the “merge” a June upgrade of its blockchain Ethereum that would make it faster, cheaper, and less power demanding, promising a meaner and cleaner crypto future.

Ethereum Merge Will Help ETH

Messari’s senior research analyst Tom Dunleavy believes in a report titled “The Decoupling Thesis” that the Ethereum merger will likely be a major turning point in investors’ economic outlook.

He points out that in the past, the crypto market leaders, Bitcoin and Ethereum, had a high positive association with the broader US stock market. For longer durations, the correlation between the two cryptos and the Nasdaq and S&P 500 index was 40-50 percent, while for shorter periods, it was about 90 percent.

Related Reading | The Top 5 Most Valuable NFT Collections And A Tool To Track Them Down

Gold and US government bonds, on the other hand, have historically had a negative correlation with stocks. However, this negative link is weakening at the moment. During the 2020 market slump, both gold and bonds, as well as equities, fell.

ETH/USD trades at $2,821. Source: TradingView
“The timeline for seeing this launch continues to extend,” said Brendan Playford,…

Source link

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed