The eagerly awaited Ethereum merge is soon to take place. according A Google countdown
With the crypto community waiting with bated breath to see how this event transpires, given that it’s the biggest software upgrade on the Ethereum network, the second-largest crypto was hovering around $1,603 during intraday trading.
This merger is significant as it will transform the existing proof-of work (PoW), infrastructure into a proof-of stake (PoS), consensus mechanism that is deemed more cost-effective and environmentally friendly.
Social engagements on Ethereum have been booming, with the weekly surge of 53.3%. according LunarCrush, market insights provider
Furthermore, ETH’s speculative activity has increased. Glassnode, a provider of crypto insight, noted:
“Ethereum speculative action continues, with over $6.12B in outstanding Open Interest for Call Options. Put options account for a much smaller $1.5B, making for a Put/Call Ratio of 0.25.”
Blockchain.News reported that Citigroup, the American multinational investment bank Citigroup, or Citi, recently stated that Merge would reduce Ether issuance overall by 4.2% annually.
Crypto traders have been shorting Ethereum in comparison to Bitcoin.BTCIn anticipation of the Merge, ). Glassnode explained:
“The spread between BTC and ETH perpetual futures funding rates is pushing to a new ATH of 77% annualized. This indicates traders are heavily short ETH relative to BTC, likely speculating/hedging for the upcoming Merge.”
Time will show how Ethereum will perform in the post-merge era. There are high stakes that Ethereum will become a deflationary investment.