One of the most ardent supporters of Bitcoin and the altcoin market shared his views on ETH’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). He explained how this will affect the market and ETH in general. Here are the details…
CEO of Bitcoin and altcoin investment firm talks about ETH
Speaking to CNBC’s Squawk Box on August 10, Mike Novogratz, CEO of cryptocurrency investment firm Galaxy Digital, revealed that he currently sees Ethereum as the strongest crypto trade due to the upcoming Merge upgrade. According to the CEO, although ETH has moved a lot so far, the balance of demand will really shift with Merge. Novogratz used the following statements:
It has moved a lot, but this Merge is a big deal. It requires the mining supply that used to sell constantly and lock it into long-term contracts. That’s why you’re going to see the supply – the demand imbalance in Ethereum is really shifting. Prices are always set on margin, so the enthusiasm of this Merge finally happening will continue to attract money to Ethereum.
Ethereum rises with Merge excitement
Notably, Ethereum remains the most popular cryptocurrency as Merge approaches. As we have reported as Kriptokoin.com, the Merge trial has started on the Goerli testnet today. This can be seen as a simulation of how Merge will act on the mainnet. Also, ETH futures volume recently hit a 3-month high ahead of Merge.
In particular, since the upgrade was announced, the value of ETH has increased. As is known, the value of the general cryptocurrency market, BTC and altcoins has been decreasing for the last 2-3 months. Therefore, the value of ETH is moving against the overall market movement. In turn, experts expect several developments in the network. A recent report said that Merge will act as a catalyst to push Ethereum to become a “global enterprise-grade asset.”
Meanwhile, stocks and crypto rose as the US Dollar Index fell, with the CPI report coming in 8.5 percent lower than expected. In contrast, Ethereum is up over 10 percent on the day with a market cap of more than $227 billion. At the time of writing, ETH is displaying an 11.1 percent appreciation. The second largest cryptocurrency by market capitalization, ETH, is trading at $ 1,885. ETH is about 60 percent below its all-time high of $4,878 recorded on November 10, 2021. However, considering that the coin even lost the $1,000 level in June, its current price looks pretty impressive. Time will tell how much the Merge, which is expected to take place in September, will affect the price.
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