The king of the Crypto market might soon lose its crown to Ethereum since how the rivalry is taking a sharp turn to one side. Bitcoin has gained a healthy 30% from the June low point, but its rival Ether, the world's second most popular crypto has staged an even more impressive comeback, rallying by about 90%. Although Ether is known to be more volatile than Bitcoin, there is more than just the bounce back in broader risk assets driving this upswing.
The Ethereum Merge, a long-awaited upgrade that will complete Ethereum's transition from a proof-of-work (PoW) to a proof-of-stake system, is set to take place in September. In addition, The Merge will transform Ethereum's monetary policy, making the network more environmentally sustainable and reducing ETH's supply. Experts believe that after The Merge, Ethereum will have lower inflation than Bitcoin. Especially with fee burns, Ethereum will be deflationary while Bitcoin will always be inflationary. For Ethereum Classic, this merge provides a key catalyst, at least in terms of interest. Often looked at as Ethereum's under-loved and under-respected sibling, Ethereum Classic is a fork of the Ethereum blockchain that came about as a result of an internal dispute among developers within the Ethereum team. Ethereum classic will remain proof-of-work, and as such, is now being viewed as a safe haven of sorts for Ethereum miners looking to pivot.
While Bitcoin will retain its function as digital gold, the researchers feel that Ethereum will still have "a larger adoption space" as the base layer of the decentralized finance (DeFi) economy. The Merge won't reduce Ethereum's high transaction fees, which is still the main issue preventing Ethereum from scaling and actually outperforming Bitcoin.
The Bitcoin price is rising in a steady manner. It remained well-bid above the $22,000 support zone. It formed a base above the $22,500 level and started a fresh increase. The price was able to gain pace for a move above the $23,000 resistance zone.
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