Why The Ethereum Merge Could Destroy ETH’s Competitors
05 Abril 2022 - 07:00PM
NEWSBTC
Ethereum could re-test its support zone as the general sentiment in
the crypto market hints at further losses. The second crypto by
market cap has been leading this current rally with Solana (SOL),
Avalanche (AVAX), and other large cap cryptocurrencies. Related
Reading | Arthur Hayes’ Crystal Ball Predicts: Ethereum To 5 Digits
In the coming months, Ethereum could continue to dominate the
market. According to some experts, such as former BitMEX CEO Arthur
Hayes, ETH’s price could outshine its layer-1 competitors. At the
time of writing, ETH’s price trades at $3,400 with a 2% loss in the
last 24-hours. Hayes’ support his bullish thesis for Ethereum on
“The Merge”. The upcoming ETH 2.0 upgrade that will combine the
network’s execution layer with its consensus layer. This will
consolidate ETH’s migration into a Proof-of-Stake consensus
algorithm. In addition to Hayes, Bloomberg Intelligence Senior
Commodity Analyst Mike McGlone believes the event will be bullish
for ETH’s price. The analyst believes ETH is about to “change the
rules of the game”. The Merge will transform ETH into a unique
financial asset with commodity, equity, and monetary traits. Using
a discounted cash-flow model on ETH, the analyst concluded that
it’s currently undervalued. McGlone believe the cryptocurrency
could break above $6,000 with 110% upside potential. As seen below,
in a diagram explaining the discounted cash-flow model, the
upcoming staking system for ETH will provide investors with several
value-creation factors. Ethereum About To Change The Game? McGlone
looked into ETH’s transaction fees since its inception in 2015.
During this period, the second crypto by market cap has seen an
increase in the price per transaction. This trend suggest
acceleration in activity, demand for block space, more adoption,
and value aggregated to the network. Ethereum could maintain this
trend well into 2035. At this time, the analyst expects it to reach
a “decay to a terminal growth rate” after a 30% annual rise in
transaction fees or cash flow until 2025. This calculations are
“conservative, the expert said. Related Reading | TA: Ethereum
Gearing For Another Lift-Off, Why ETH Could Test $3,750 In the long
term, ETH could see as much as $9,000 or a 219% increase to the
upside. McGlone said the following highlighting ETH potential with
the upcoming Merge: Though any delays or bugs in the Merge could
have a negative impact, the main risk to revaluation is sub-par
aggregate transaction-fee growth. Once the next phase, Sharding,
disaggregates the base chain into 64 individual “shards”,
dramatically increasing Layer 1 blockspace, gas prices are expected
to fall commensurately. Conversely, this will unlock the full
potential of Layer 2 rollups, which can process an increasing
number of transactions at almost zero cost.
Avalanche (COIN:AVAXUSD)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
Avalanche (COIN:AVAXUSD)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024