- Ethereum’s lead developer Preston Van Loon believes that the Merge will drive widespread adoption of the altcoin.
- Ethereum aims to be the global settlement layer and with the transition to proof-of-stake developers expect ETH to become the preferred crypto.
- Analysts believe Ethereum is on track to hit its $2,000 target as the altcoin recovers from its slump.
Ethereum heads into the Merge within the next few days, therefore holders are awaiting a massive impact on the altcoin’s blockchain. Developer Preston Van Loon confirmed that the change in Ethereum’s consensus mechanism could drive ETH price higher.
Also read: DeFi collapse alert: Here’s how to safeguard your funds from failure of Ethereum Merge
Ethereum’s impending Merge is a game changer for ETH
Ethereum’s Merge is a key event that ETH holders and the crypto community is looking forward to. The transition from proof-of-work to proof-of-stake is set to change the way new Ether is created and reduce power consumption by 99.95%.
In the days leading up to the Merge, there is a decline in capital inflow in Ethereum. Irrespective of the drop in Total Value Locked and the reduced capital inflow from investors and institutions, analysts remain bullish on Ethereum.
Preston Van Loon, an Ethereum protocol developer at Prysmatic Labs told CoinDesk TV that ETH’s objective is to be a “global settlement layer” and this will become likely with the Merge. The transition to PoS could drive Ethereum adoption higher. In the long term, network security and cost of transaction could reduce, thereby making Ethereum the preferred blockchain for developers.
Ethereum’s Bellatrix upgrade, the last hard fork of the network before the Merge was implemented on Tuesday. Van Loon explained,
What it means is the proof-of-work side of Ethereum is now ready to merge with the proof-of-stake side. We see this [environmental impact of PoW] as a barrier for global adoption.
Van Loon argues that the beauty of proof-of-stake is having something at stake. Therefore saying I'm behaving in an honest way, rather than relying on this work mechanism. Since Ethereum’s energy consumption will be reduced, institutions would adopt the ETH blockchain.
Analysts set a $2,000 target for Ethereum
Analysts revealed a bullish outlook on Ethereum and set a $2,000 target for ETH. The altcoin started its recovery from the recent slump and hit the $1,765 level. Tony M, a leading crypto analyst believes ETH is on track for its recovery to $2,000.
ETH-USDT price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?