The second cryptocurrency with the highest market cap, Ethereum looks strong with a 4% price rise today. Ahead of “the Merge’ Ethereum is trying to break the key resistance level.
Ethereum Price Analysis
As seen from the graph, Ethereum slowly climbs back to a higher price level with the pushbacks. After hitting $2000, Ethereum retraced back to $1530 and again aimed for the above $1700.
Due to recent upgrade news, Ethereum outperforms Bitcoin and gains market capitalization. The market capitalization of ETH is currently around $208 billion, according to CoinMarketCap. The current market cap is almost half of the BTC’s market cap which is $415 billion. The bear market has significantly affected Bitcoin’s price and market share. Currently, its market dominance is around 40% which is as low as on the 20th of January 2022. The highest dominance rate was experienced on 11th June 2022. At that time the market dominance of BTC was 48.38% of the whole market.
“Crypto Payments are Superior”
Vitalik Buterin, the mastermind behind Ethereum, recently tweeted about the convenience of crypto payments. He also added that this will boost international business, charity, and sometimes even revenues within countries.
People continue to underrate how often cryptocurrency payments are superior not even because of censorship resistance but just because they’re so much more convenient.
Big boost to international business and charity, and sometimes even payments within countries.
— vitalik.eth (@VitalikButerin) August 24, 2022
Previously in Korea Blockchain Week, Vitalik mentioned that crypto payments will be more popular in the coming years.
“So today with roll-ups, transaction fees are generally somewhere between $0.25, sometimes $0.10, and in the future with roll-ups with all of the improvements to efficiency that I talked about. The transaction costs could go down to $0.05, or even maybe as low as $0.02. So much cheaper, much more affordable, and a complete game changer.”
The Ethereum Merge
With the merger, Ethereum will move from Ethereum’s proof-of-work blockchain to a proof-of-stake blockchain. With this transition, the Ethereum blockchain will consume less energy and be more productive. Unlike proof-of-work consensus, proof of stake does not rely on the mining power of the nodes and transactions will be run by nodes that have staked or locked their cryptocurrencies with blockchain.
One of the reasons for the transition is the side economical factors. An excessive amount of energy consumption and carbon dioxide emission was criticized by the press. As a result, main cryptocurrencies started transitioning to less energy-consuming technology.
ETH Staking Has Slowed Down
As the Merge gets closer, people hesitate to stake or lock their assets on the blockchain. According to Glassnode, the amount of new Ethereum deposits has decreased to 220 deposits per day on 23rd August. This is mainly due to investors’ expectations about the Merge, which investors wait for the successful launch of this upgrade.
Major exchanges approved the support for the fork
Binance has confirmed the support for the Ethereum fork. As the expected merge date gets closer, Binance has announced that current Ethereum holders will receive 1:1 Ethereum tokens for their current balance on the exchange. Binance also indicated that they will continue to use the ETH ticker for Ethereum. Binance will suspend deposits and withdrawals as the Merge date approaches.
Bitfinex will use a different method ahead of the Merge. The Ethereum Split Tokens (CSTs) will be available for users and those include both tokens, ETH pos, and ETH pow. If the fork happens successfully then both tokens, ETHS and ETHW will be exchanged for ETH.
10,190 ETH has been donated to Ukraine
As Russia entered into a war with Ukraine, many people donated money, especially cryptocurrencies to Ukraine. On the 24th of August, Ukraine celebrated its Independence day, and according to the Ukrainian Ministry of Digital, Transformation’s total acquired donation amount is 10,190.843 ETH to that date. Besides Ethereum, crypto enthusiasts have also donated 596 BTC, 2.23 million USDC, 10.44 million USDT, 435 645 DOT, and 7,8744 SOL to Ukraine according to the data.
On the website, the expenses have been displayed publicly. According to the data, $5,29 million was spent on rifles, and $5,25 million was spent on a global anti-war media campaign, creating transparency on the expenditure side.