Bitcoin has always been the top cryptocurrency, but Ethereum’s recent merge could mark the beginning of major divergence. For years, ether (the currency associated with Ethereum) lagged behind bitcoin in terms of value and popularity. However, that may be changing now – ether is starting to catch up to bitcoin, and it may even surpass it eventually.
The Ethereum Merge is planned to happen this week. The Ethereum blockchain will transition from a proof of work (PoW) to a proof of stake (PoS) protocol.
Merge Overview
Ethereum, the world’s second-largest cryptocurrency by market capitalization, is undergoing a major network update that will transition Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism. This change could result in a 99% reduction in energy costs associated with processing Ethereum transactions.
The Ethereum network currently consumes more energy than any other blockchain network, and the move to PoS is seen as a way to make Ethereum more sustainable in the long term. The Ethereum Merge is expected to be completed this week, and it is hoped that it will help Ethereum scale to meet the demand of the growing decentralized applications (dApps) ecosystem.
How will Merge Affect the Price of Ethereum?
The price of Ethereum has been on the rise in recent months, and the upcoming merge is likely to further increase the value of the cryptocurrency. There are a few reasons for this. First, the merge will create a single, unified blockchain that will be more attractive to investors and users. Second, the move will reduce the overall supply of Ethereum, which is likely to lead to higher prices.
Finally, the merge will eliminate one of the major forks in the Ethereum network, making it simpler and more efficient. All of these factors are likely to boost the price of Ethereum in the months and years ahead.
Bitcoin and Ethereum are Dominating the Crypto Market for Years
Despite the recent cryptocurrency market crash, Bitcoin and Ethereum have been dominating the market for years. Since their inception, both Bitcoin and Ethereum have grown exponentially in popularity and value. Bitcoin, the first and most well-known cryptocurrency, was created in 2009 with the goal of revolutionizing online payments.
Ethereum, on the other hand, was launched in 2015 with the aim of providing a decentralized platform for smart contracts and Applications. While there are thousands of different cryptocurrencies available today, Bitcoin and Ethereum continue to dwarf the competition in terms of both user adoption and market capitalization. Given their long track record of success, it’s unlikely that this dynamic will change anytime soon.
Will Ether Flip Bitcoin in the Next Year?
Bitcoin’s share of the crypto market’s market value has fallen to 39.1% from its peak of 47.5% earlier this year. Ethereum, on the other hand, has seen its share rise to 20.5%. The Ethereum merge has been highly anticipated by the cryptocurrency community and is seen as a major milestone for the platform.
The upgrade is expected to improve the scalability of Ethereum and make it more competitive with other smart contract platforms such as EOS and Tron. Additionally, the improved security and reliability of Ethereum is expected to attract more institutional investors to the platform. The increased demand for Ethereum is expected to drive up the price of the currency, eventually leading to Ethereum surpassing bitcoin as the largest cryptocurrency by market capitalization.