The upgrade to Ether’s blockchain, which is the second largest cryptocurrency in circulation, is highly anticipated. This could lead to institutional investors investing more money and helping to increase Ether’s value.
The ultimate goal of Ethereum, the upgraded blockchain, is to make it more scalable and secure. It would also eliminate the need for crypto mining, which is a source of severe criticism.
Bitcoin, with a market capitalization of more than $804 billion, is currently the largest cryptocurrency. However, Ether with a market cap of over $360 billion could become the leader in the future after an infrastructure upgrade called “merge.”
Industry watchers speculate that the “merge”, although a timetable is not yet clear, could occur this summer. There’s a lot at stake for investors already.
Ethereum is not only used to power Ether but also by non-fungible token project (NFTs) and decentralized finance applications (DeFi). An upgrade could greatly increase its value.
Ethereum relies on proof-of-work, where miners must solve complex puzzles in order to validate transactions and create new coins. This process is extremely complex and requires huge amounts of computer power. It’s also often criticised for its negative environmental impact.
According to data dashboard Watch the Burn, Ethereum has already destroyed or burned $5.9 billion worth Ether since August’s implementation of an important upgrade. Although the August upgrade was not related to the merger, it does indicate that Ether issuance has slowed down. Some believe that Ether could become a deflationary asset or one with declining supply which can be used to store value. Bitcoin is already regarded as a safe haven.