Cryptocurrency

Shiba Inu and Dogecoin Are on a Price Rally Due to ETH Merge! But why?

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Dogecoin and Siba Inu are surging after a long slide, is ETH Merge have something to do with it?

Shiba Inu and Dogecoin had a tail-wagging weekend following a surge in retail investor interest that drove some of the biggest value increases in months. The Shiba Inu (SHIB) token price surged more than 34 percent on Monday and is currently the most trending digital asset on the crypto information aggregator coinmarketcap.com. The SHIB token touched a high of US$0.00001774 on Monday morning. Although the exact reason for its price rally is difficult to guess, it could be due to several positive developments concerning crypto. Dogecoin is up over 12% in the last week and has moved into the top 10 most valuable cryptocurrencies by market capitalization according to CoinGecko. Lower-than-expected inflation prints out of the US last week boosted hopes that the Federal Reserve might be able to ease off its pace of rate hikes, helping riskier assets like crypto. Ethereum has also been supported after a final test stage before the Merge upgrade which co-founder Vitalik Buterin estimates will occur around September 15.

Dogecoin (DOGE) Is In The Cryptocurrency News Headlines Regularly

Dogecoin (DOGE) launched in December 2013, making it one of the tokens from the early days of cryptocurrency and even older than Ethereum (ETH), which came out in 2015. It may have initially been conceived as a joke, but according to CoinMarketCap, Dogecoin (DOGE) is not only the largest meme coin but also the tenth-largest cryptocurrency at the time of writing this.

Dogecoin (DOGE) has been a recurring item in the headlines of many cryptocurrency news outlets for a long time, especially since billionaire Elon Musk became a holder and fan of the token and started posting about his enthusiasm on Twitter in December 2020. Almost every time Musk publishes a tweet regarding Dogecoin (DOGE), its value appreciates noticeably.

Shiba Inu (SHIB) Has Evolved Into A Unique And Popular Meme Coin

Shiba Inu (SHIB) is the second-largest meme coin. According to CoinMarketCap, it is the fifteenth-largest cryptocurrency at the time of writing. It initially started as a joke token like Dogecoin (DOGE), a store of value used for sending and receiving transactions. However, it has evolved into a unique cryptocurrency that has added utility.

Shiba Inu (SHIB) has been featured in the cryptocurrency news headlines recently when, on June 27, 2022, the highly anticipated BONE Farms proposal won the community vote with a majority of 97.88%. BONE is one of four tokens used for staking, yield farming, trading, and rewards in the Shiba Inu (SHIB) ecosystem, with the other three being Shiba Inu (SHIB), LEASH, and the ShibaSwap LP Token.

Ethereum Merge

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 haven of sorts for Ethereum miners looking to pivot.

Ethereum's Triple-Halving Event to Promote Instant Price Surge

As per expert predictions, the launch of the Merge upgrade will trigger a triple-halving event for the crypto. They believe that since BTC has mostly reacted positively to halving, it is also likely that Ethereum value will also surge instantly, given the two are quite closely related. Now, let's dive in deep to understand the 'triple-halving event' and the reason behind its importance to raise the value of Ethereum.

When the Ethereum network turns to the PoS consensus mechanism after the Merge upgrade is launched, the ETH supply will decline by approximately 80% to 90% through a process called 'burning' and generating 'deflationary pressure' on the network, which is equal to halving the Bitcoin system three times, this is the 'triple-halving' for Ethereum. The crypto's EIP-1599 protocol, also known as the Ethereum London fork, accompanied by the PoS consensus algorithm will drastically reduce the issuance of ETH. After this development, the demand for Ethereum is expected to dramatically increase in the upcoming months.

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