An altcoin project is signaling to buy heavily, according to consulting giant The Fool. Here’s why and predictions for cryptocurrencies…
This altcoin rises on expectations
One of the most important events in the history of cryptocurrencies is about to happen. Ethereum developers have successfully completed the assembly of the Goerli testnet. Goerli is the third and final testnet to be tested before the real Merge arrives on the network. For those who don’t know, testnets are a testnet to detect any potential issues with the real Merge. It is possible to compare them to servers where games pre-test improvements.
With the success of Goerli’s merge, most things are ready for the Ethereum Merge upgrade. As cryptokoin.com reported, developers, investors, and most of the crypto world have their eyes set on September 19, the date when Ethereum will switch to the Proof-of-Stake consensus mechanism. The news triggered a buying pressure from investors, and ETH is up roughly 14% since Wednesday. So is this a “buy the rumor, sell the news” thing?
The “buy the rumor, sell the news” thing?
Time will tell the answer to that. However, the seriousness of this development seems to have not yet entered the market. A rise of around 14% for one of the most significant events in blockchain history, frankly, is a little weak. Perhaps there are still reservations that Ethereum can actually achieve this. Altcoin is no stranger to missed deadlines or moving targets. Merge is an upgrade that has been anticipated for over five years. The developers failed to achieve the goals, although they were repeatedly planned.
Recently, however, the goals have been fulfilled. This was the most important reason why ETH has doubled since mid-June. Perhaps the value of Merge is already priced in Ethereum today. After a brutal start to 2022, it gained close to 100% in just a few weeks. Therefore, Ethereum has the potential to be the only altcoin at the moment that investors consider profitable.
“Ethereum Merge could turn the entire market into a bull market”
Activity in all areas of crypto has dropped this year. Decentralized finance (DeFi) developers aren’t building that much. As altcoin prices fell, the NFT market lost almost all of its strength. However, massive crypto exchanges received less traffic. But the Ethereum Merge upgrade has the potential to change that. Events like Merge always generate plenty of hype and excitement. But this is a harbinger of bigger things, and they can amount to hundreds of billions of dollars. It’s possible that the Merge upgrade will start as scheduled.
If this happens, developers will start creating new smart contracts and DeFi applications on the revamped network. Right now, they may be waiting for September 19 to do so. One of The Merge’s promises is lower gas fees. This is something NFT creators and collectors have been waiting for months. A smooth transition to Proof-of-Stake will bring revival to the NFT market. These are just two examples of possibilities in a post-Merge world. The consulting giant says the 14% gain in Ethereum’s price is just a hint for the future.
“Altcoin offers great buying opportunity”
It provided estimates for the consulting giant Merge. Accordingly, as we approach September 19, there will be more expectations and purchases. In the days before the merge starts, we will see an increase in the altcoin price. When traders witness a successful transition take place, they will receive some profit. Therefore, the price will fluctuate. But in the coming weeks and more likely months, developers and users will flock to take advantage of the higher speeds and lower fees. Thus, the activity on the Ethereum network will increase.
If this happens, Merge will ensure that the altcoin price is correctly priced. Do not plan for Ethereum to reach its full potential on September 19. Instead, pursue your goals for months, or better yet, for years.” says. It is possible that a future where Ethereum supports more use cases than ever before will cause it to break its previous all-time high. Consider that Ethereum reached almost $5,000 without Merge in November 2021. Then imagine what it could do once the transition to Proof-of-Stake happens.
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