The highly awaited Merge update for Ethereum, which is projected to cut the supply of ether and minimize the carbon footprint of the blockchain, officially began Tuesday. As a result, the price of ether to that of bitcoin increased to its highest level since December 2021.
The ETH/BTC ratio reached as high as 0.08 Tuesday, as ether ETHUSD, -4.08% traded at around $1,600, up 0.5% over the past 24 hours, while bitcoin BTCUSD, -1.16% lost 3.6% to around $19,101, according to CoinDesk data.
ALSO, READEther Trades At $1900 After Goerli Testnet Merger
It is believed that Ethereum’s Merge would switch the blockchain from proof-of-work to proof-of-stake, a consensus process that uses a lot less energy. According to Vitalik Buterin, a co-founder of Ethereum, the upgrade is most likely to take place between September 13 and September 15.
ALSO, READ AM Best Revises Outlooks For Core Specialty’s Subsidiaries To Positive
Ether’s Strength Over Bitcoin Reaches Yearly High As The Merge Kicks Off
The Bellatrix upgrade, which ushers in the Merge, went into effect on Tuesday.
Despite ether’s strength over bitcoin, ether futures are trading well below spot prices, as traders position themselves in preparation for a potential chain split.
ALSO, READ Wood-Dulohery Insurance & Insurance Center Inc. Confirm Merger
Chandler Guo, an Ethereum miner, proposed a “hard fork” of the Ethereum blockchain in late July, which would break the chain into two separate versions based on the proof-of-work consensus algorithm. Since the Merge would render mining obsolete, some miners swore support for Guo’s idea. The potential popularity of the new chain is unknown.
ALSO, READ First Mover Asia: Bitcoin Sinks Below $23K
Ether’s Strength Over Bitcoin Reaches Yearly High As The Merge Kicks Off
Still, if the hard fork materializes, all ether holders are expected to receive an equal amount of new tokens on the forked chain, in line with what usually happens during forks.
AllInsuranceHUB is a blog for everyone who seeks an informative, educative, and knowledge-based online insurance and investment community. We share Biographies, Top-notch investment tips, finance news, insurance policy details and much more. You can read and share thoughts, ideas, and opinions on the finance market and get real-time updates from around the globe.
