As per the expectation of the Merge, a long-awaited improvement to the Ethereum network is the primary factor in the recent rebound in cryptocurrencies. Yes, you rightly guessed we are talking about Bitcoin maximalists. So in this regard, we can discuss what JP Morgan says. It thinks that the market has found its bottom despite low trading volumes. In fact, Bitcoin and Ether have increased by 35% and 101% since their mind-June lows. According to the data from CoinMarketCap, the overall market value of the cryptocurrency has also regained $1 trillion.
So pretty recently, JP Morgan’s analyst Kenneth Worthington ascribed the shifting economics of the cryptocurrency market to the planned Ethereum Merge. It will switch the blockchain from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Pretty interesting, right? Let us look into more details regarding this!
How is Ethereum Merge a Boon to Crypto Markets?
If you have been following the JP Morgan group, you will know what we are referring to. So as per the sources, the JPMorgan analyst believes the real impetus has been the Ethereum integration. At the same time, the favorable statistics following the unveiling of the Sapolia and Ropsten testnets in early July and June also helped indicate that the merge is feasible in 2022.
So Worthington says that “Despite trade volumes remaining down, it looks that cryptocurrency markets have found a floor.” Can you guess how this integration will help the investors? JPMorgan stated that a successful Ethereum unification later this year will help bolster investor confidence.
So we can anticipate the integration to occur in September. This is after the performance of the next Georli testnet. According to the sources, they have scheduled the test for August 11. Needless it is one of the final steps before the merge. Let us look into some more info regarding Bitcoin maximalists.
Bitcoin Maximalists: is PoW to PoS Sending a Positive Vibe?
As we already said, the price of Bitcoin increased by 20% in July. Meanwhile, the price of Ethereum increased by roughly 60% compared to May. This is with regard to the back of encouraging news regarding the cryptocurrency’s shift from PoW to PoS. Needless to say, they intended the system to increase the network’s speed and mining efficiency.
At the same time, JPMorgan observed that the capacity of Bitcoin and Ethereum will probably rise since June’s lows. This is another indication that the market has reached a bottom. Bitcoin’s price has fallen by over 60 percent since its all-time high of nearly $68,000 in November last year.
So naturally, this merge will provide crypto investors with a much-needed boost in confidence. At the same time, the long-term revival of the cryptocurrency market may also depend on the imminent Ethereum merger. Therefore, this is highly essential for the investors.
So as we conclude, we can say that initially, we probably did not think of this merge, but now we can see its importance. This merge will become a boon to crypto markets. It will help the investors to regain back their lost confidence.