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Ethereum 2.0 Deposit Contract Hits ATH as Investments Heightens

More investments continue trickling into Ethereum 2.0 deposit contract, given that the number of staked ETH is scaling the heights.

Market insight provider Glassnode explained:

”Total value in the ETH 2.0 deposit contract just reached an ATH of 12,777,045 ETH.”

Source: Glassnode

Ethereum 2.0, or the Beacon Chain, which was recently renamed the consensus layer, was launched in December 2020 and was regarded as a game-changer that sought to transit the current Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) framework.

The transition from a POW to a PoS consensus mechanism called the merge is speculated to be the biggest software upgrade in the Ethereum ecosystem and the proof-of-stake algorithm will allow the confirmation of blocks in a more energy-efficient way.

Therefore, validators will stake Ether instead of solving a cryptographic puzzle.

The number of validators is also edging closer to the 400k mark. Glassnode acknowledged:

“Over 12.764M ETH has been staked by 398k unique validators. This is 10.73% of the circulating supply. Since 1-May, 19.8k additional validators have come online and staked.”

Ethereum researcher Justin Drake recently disclosed that the merge was expected in August because testing was in the final stages.

The merge is usually regarded as a game-changer that will give the Ethereum network a new face because it is expected to enhance scalability through upgrades like sharding.

Furthermore, it is anticipated to strengthen Ethereum’s quest as a deflationary asset because the second-largest cryptocurrency’s value is speculated to increase based on slashed supply.

Meanwhile, Arthur Hayes, the ex-CEO of crypto exchange BitMEX, commented that Ethereum is on its way to $10,000 by the end of the year because the merge will be the tipping point, putting the second-largest currency ahead of the game.

Hayes pointed out that the proof-of-stake consensus mechanism will make Ethereum a “currency bond” or commodity-based compared to Bitcoin.

Crypto Market Resurgence: Two Altcoins Promising a Better Week Ahead

The digital currency ecosystem is trailing a bullish path today as a positive sentiment has been sweeping around the industry with increasing stack up recorded over the weekend.

As evidence of the current outlook, the combined crypto market cap is up 3.29% to $966.41 billion at the time of writing.

With weekends often characterized by bearish events, the ongoing upsurge could be evidence of a better week ahead. Should these projections be true, here are the two altcoins that are likely to fuel this growth.

Ethereum (ETH)

Ethereum still retains its stance as the largest smart contract blockchain protocol to date, and it is amongst the most trusted coins to lead a great charge for the future of coins. The digital currency is currently trading at a price of $1,351.81, up 9.27% in the past 24 hours per data from CoinMarketCap.

The Ethereum ecosystem is about to be transformed as developers within the community unanimously agreed that September 19 will be the date for The Merge. The Merge described the transitory point when Ethereum as a Proof-of-Work network will switch to a Proof-of-Stake consensus model.

Beginning from now till the Merge occurs, investors are likely to continually stack up on the coin seeing Ethereum is bound to take a new lease of life.

ApeCoin (APE)

ApeCoin is the native token of the Bored Ape Yacht Club (BAYC) ecosystem and has a very strong developmental backing from the iconic Yuga Labs team.

The token is changing hands at $5.04, up 10.49% over the past 24 hours, and while a cooling period is beckoning, the digital token still has a massive propensity for growth. By recently integrating with the Polygon Network, it has been able to resolve one of its most crucial challenges of a high gas fee.

In reality, when the crypto winter will be rolling over, and investors are exploring metaverse tokens to bank on, ApeCoin, with its iconic franchises and community, is bound to be amongst the most notable that will be chosen.

Market Slips Into a Bear Motion, Fate in The Merge of ETH Might Reboot Positive Sentiment

The volatility inherent in the digital currency ecosystem may seem stabilized at the moment, but a deeper insight into on-chain analytics shows more indeterminate trends are at play.

These trends can easily tilt the balance in space, and per the current outlook, the bears seem to be igniting such a pressure that can grow to their advantage if sustained enough.

At the time of writing, Ethereum (ETH) has started paring off its weekly gain and is down 4.53% to $1,690.39, according to data from CoinMarketCap. This Ethereum slip is not a standalone event as it trails Bitcoin (BTC), which has slipped by 3.65% over the past 24 hours to $23,089.63.

Considering the two digital currencies largely define the pace at which other altcoins move, we have seen a massive negative trend on all key altcoins, including Solana (SOL), Cardano (ADA), and Binance Coin (BNB), and Polkadot (DOT) to mention a few.

Besides the current negative slide being seen, the industry has experienced a transient revival over the past two weeks. While the market bulls are still trying to figure out the best strategies to place their bet in order not to get burnt, as in the case of Terraform Labs and Celsius, investors must hang onto a whole new fundamental that can help sustain the positive sentiment to stay committed to digital assets.

Pitching Ethereum’s Merge Event as the Temporary Bull Factor

In searching for an encompassing use case that can keep market bulls in line in the medium term, the forthcoming Ethereum’s Proof-of-Stake (PoS) merge with the Proof-of-Work (PoW) is one formidable push that can rally even Bitcoin as well as other digital currencies.

The emergence of Ethereum 2.0 will mark another era of scalability, usability, and energy efficiency for the world’s second-largest blockchain network. Investors, particularly the corporate ones, are poised to pay more favorable attention to Ethereum-based products as they can now fit more into their ESG strategies with its now energy efficiency.

The fact that it is also cheaper than Bitcoin and that real-world use cases can be attached to the protocol will also drive its growth.

With September 19 set for the event, CoinShares data shows institutional investors have started stacking up on the coin as they may be pushed to buy the rumour and sell the news. The expectation is that the potential embrace of Ethereum will also spread out to other altcoins even though the coin’s successes will be a way of demarketing the offerings of the so-called “Ethereum Killers”.

Binance Plans to Halt Ethereum Deposit and Withdrawals During The Merge

The largest crypto exchange in the world by trading volume Binance has announced that it will be halting the deposit and withdrawal of ETH and ERC-20 during The Merge slated for Sept 15.

According to the announcement, the crypto firm is making this move to ensure a safe transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) during The Merge.

Ever since Ethereum was created a few years ago, the blockchain has functioned on a PoW system. This system, however, requires the interconnection of several computer network systems to operate. This has spurred the use of a remarkable amount of energy, spurring a debate that has lingered for years.

The debate provides an option for the Ethereum blockchain to operate on a different system called the PoS, which is remarkably low in energy consumption and arguably more efficient.

The contentions around the system that works better for the Ethereum blockchain have now met a conclusion, which is the conversion, or rather The Merge of ETH from PoW to PoS.

To ensure a safe transition between both systems, cryptocurrency exchanges like Binance have now taken to the option of suspending the withdrawal and deposits of the ethereum pegged cryptocurrencies.

Usually, during a merge, there are two possible outcomes also known as a hardfork. One is that a new token is created as a result of the merge, the second scenario is that no new token is created. Whatever the outcome is for this major upgrade to PoS, whether a new token is created or not, Binance said it now has a plan for whatever the outcome is.

If a new token is created, Binance account users will be credited with the forked token from the minority token at a ratio of 1:1. If no new token is created, the deposits and withdrawals of ETH and ERC-20 will resume as a matter of urgency.

While the complete upgrade is expected to be completed by the end of September, Binance noted that further information about The Merge and how it affects its investors will be communicated.

Earlier this month, Coinbase said it will also halted withdrawals and deposits of ETH and ERC-20 on its platform while noting the possibility to list any forked token from the merge.

Ethereum Miners Realized $756M in August Pending The Merge

Miners on the Ethereum blockchain have made the sum of $756 million while gearing up for The Merge which will take place later in this month.

According to a report from The Block Research, the miners witnessed a remarkable increase in August for the ETH coin as against June and July.

The Merge of the Ethereum blockchain slated for September 15 will see that the digital asset is upgraded from the Proof-of-Work (PoW) network to the Proof-of-Stake (PoS) network.

From the inception of the ETH coin, the virtual asset has been functioning on the PoW system, which exhausts energy to a great degree and is costly to manage. The PoS, however, is moderately less costly to maintain and minimizes the exhaustion of energy to the barest minimum.

In preparation for The Merge, some exchanges like Binance and Coinbase said they will halt the deposit and withdrawal of Ethereum on their platform, citing that it will aid a safe transition into the Proof-of-Work (PoW) network.

According to the analysis, Ethereum miners generated a 37% increase in August from what was derived in the month of July. In July they made the sum of $545 million, accounting for a difference of $211 million.

Per data collated by The Block Research, about $30 million of the revenue was from processed transaction fees, the rest was used “as block subsidies to miners”.

The report noted that the revenue generated in the month of August is believed to have been remarkably influenced by the price of Ethereum for the month. In July, the ETH price plummeted to as low as $1,040, but later picked up in August, selling at as high as $1980, explaining the revenue generated in the month.

The daily Ethereum mining revenue in June and July was averaging $15 million to a climax of $23 million. However, in August, the daily ETH mining revenue peaked at $27.5 million.

At the completion of The Merge, there are chances that a new digital asset will emerge. The asset may or may not gain the patronage of crypto users.

Grayscale Investments Files Claim over Ethereum Proof of Work Token after the Merge

Grayscale Investments, a leading investment partner for digital currencies is set to distribute Ethereum Proof of Work (ETHPoW).

The distribution will come following the “Merge’’ as a result of a fork in the Ethereum blockchain and is set to take effect on September 26, 2022.

According to filings, Grayscale Trust currently has approximately 3,059,976.06309448 ETHPoW tokens while Grayscale Fund possesses 40,653.24325763 ETHPoW tokens approximately. However, the amount of these assets from both the Trust and Fund has not been determined as they are relatively new to trading.

Grayscale Investments will be appointed as an agent to acquire and sell the Ethereum Proof-of-Work token on behalf of Record Date Shareholders. Grayscale will there have the right to sell or abandon the ETHPoW tokens as it deems fit and if there is an event of any sale of ETHPoW token, Grayscale has the right to remit cash proceeds to Shareholders.

Grayscale may also choose to sell ETHPoW tokens through an affiliate, any affiliate being used will be expected to receive a commission from the proceeds of such sale. Therefore, the price of ETHPoW token may either increase or decrease when a purchase is made through an affiliate.

The trading of the ETHPoW tokens has not been established as there are still uncertainties in the acceptance of the token by investors and trading platforms. The price of ETHPoW tokens is therefore excepted to fluctuate as a result of the volatility that may occur due to these uncertainties.

Ethereum (ETH) has remained in the news since going through its biggest software upgrade, known as the Merge, which saw a change from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus process.

Based on the conjecture generated by the much-awaited Merge, active addresses were assumed to rise with weekly social engagement levels jumping by 53%. However, the Ethereum platform did not achieve the anticipated result after going live during intraday trading according to a report from CoinMarketCap.

Ethereum's Vitalik Buterin Shares Insights on Possible ETH Price Drop Post-Merge

The run-up to the Merge event of the Ethereum protocol saw a number of anticipation from members of the Ethereum community and broader crypto investors on how the coin’s price will be influenced positively.

This anticipation was cut short as the price of Ethereum post-merge has not been quite impressive.

Since the merge event, Ethereum has traded largely below the $1,400 resistance point and is currently trading at $1,323.52, atop a 2.53% growth over the past 24 hours according to data from CoinMarketCap.

Ethereum co-founder, Vitalik Buterin has made an attempt to explain this price slump in a recent interview with New York Time’s Ezra Klein.

“I think the post-merge price drops, I mean, really surprised me. They really surprised everyone. There is an expression, by the rumor, sell the news. And I’ve never really known how seriously that expression should be taken or how often that kind of pattern actually plays out in real life,” he said when asked for his opinion on the price drops.

“I guess, the reason why something like that would happen psychologically is that everyone gets very excited and confident running up to an event. But then when the event actually happens, it just feels, in retrospect, almost less significant than what everyone had been expecting going in. And then there’s this wave of disappointment, and the price of it ends up dropping a bit.”

To Vitalik, this is one explanation for the current performance of the Ethereum coin, and the second reason that can be attributed to this drop is the general market condition. To Vitalik, there is a pervasive onslaught in the financial world that is affecting more than just the crypto ecosystem.

The interview also saw the crypto leader emphasize how Terra founders attempted to manipulate the market in order to keep the prices of their coins stable. In his views, he believed those who lost to the protocol when it collapsed in May did not listen to the “Lots of smart people were saying, hey, this is fundamentally bad.