- Due to the Ethereum Merge, the meme-inspired cryptocurrency, Dogecoin, is now officially the second largest Proof-of-work(PoW) crypto network within the cryptocurrency market cap
- As feared, Ether did experience some decline, falling by 8%, adversely affecting its acceptability among various exchange platforms
- The Ethereum Merge is but a step in a long series of upgrades. This movement will lead to more scalability and changes within the crypto network
The Ethereum Merge finally happened on the 15th of September, fully integrating the Proof-of-Stake mechanism. A concept based on staking and validator to curb the excessive heat consumption of the Proof-of-Work mechanism.
According to the Ethereum Foundation, the transition will likely reduce its energy consumption by at least 99.95%. Additionally, it will reduce the world’s electricity consumption by 0.2 per cent.
They are creating a greener move for the second largest cryptocurrency. Even though the Merge recently happened, its effects have already surfaced within the crypto network and market. Even cryptocurrencies such as Dogecoin have been affected, and numerous crypto traders have a few words to express about this Merge.
Dogecoin has become the second largest PoW cryptocurrency.
Due to the Ethereum Merge, the meme-inspired cryptocurrency, Dogecoin, is now officially the second largest Proof-of-work(PoW) crypto network within the cryptocurrency market cap.
Granted, Bitcoin still has a significant lead as the largest company. Although with the recent transition, Dogecoin has comfortably taken over as the runner-up.Dogecoin’s current crypto market cap is $7.83 billion, followed by Ethereum Classic(ETC) at $4.69 billion. The fourth and fifth positions within the crypto market cap are occupied by Litecoin(LTC) and Monero(XMR) at $4.69 billion and 2.65 billion.
This has relatively come as a shock to many Dogecoin crypto traders. Because Dogecoin is a meme-coin, not everyone expected this instant rise. Most of its fans have taken it as a positive sign since “the joke of crypto” has now taken the limelight. It has also brought in various negative remarks. Many are yet to see the potential of the meme coin, and some even deem it a useless digital currency.
Although Dogecoin is currently basking in its recent glory, the meme coin might short-live it. Ethereum has stated that ETH PoW will still be operational. The Ethereum Merge caused immense pressure and strain on the cryptocurrency network but abandoning its initial system was not part of the plan.
The Ethereum Merge is now a reminder to all other PoW-powered cryptocurrencies that change is coming quickly. Lachlan Feeney, the founder and CEO of Australian-based blockchain development agency Labrys, stated that the pressure is on since Bitcoin is now just a PoW system in a PoS shifting world.
Dogecoin has noted this transition and even expressed interest in following Ethereum’s footsteps and transitioning to Proof-of-Stake. In 2021, Dogecoin released its Doge Trailmap, which included a Docgecoin “community staking” similar to PoS. Its developers said it would allow all Dogecoin users to stake their DOGE. In addition, they get extra tokens for supporting their cryptocurrency network.
Has the Ethereum Merge inspired Dogecoin to take the next step? A question best answered by the following actions Dogecoin will take.
Ether (ETH) falls after Ethereum Merge.
Initially, some speculations hinted that Ether might experience some difficulties with the Ethereum Merge.
As feared, Ether did experience some decline, falling by 8%. This has adversely affected its acceptability among various exchange platforms. Unocoin has officially disabled Ethereum and Ethereum-based coins and token deposits and withdrawals. Sathvik Vishwanath, Co-founder & CEO of Unocoin, stated that due to the Ethereum Merge, ETHs volatility within the crypto market would be at an all-time high. He advised crypto traders to tread when dealing with Ether carefully. Because it resented an uncalculatable risk, which he and Unocoin were unwilling to take.
Anto Paroian, CEO of crypto hedge fund ARK36, stated that the Ethereum Merge required a significant investment. Even though Ethereum was able to gain more than 100% since its June lows, it would still pose some level of difficulty.
Even without immediate gains, there is still hope.
Sumit Ghosh, CEO and Co-Founder of Chingari, an on-chain social app, stated that the Ethereum Merge was a bold transition within the cryptocurrency network. Expecting the crypto market to reflect these positive gains is unlikely. Despite this, crypto traders should seek a long-term investment strategy to reap the benefits of the Ethereum merger.
Jason Lau, chief operating officer at Okcoin, concurred with the above statement as he told CNBC that many asset managers and holders are currently thinking outside the box. By positioning themselves for a long-term game.
Many within the crypto market are currently monitoring and buying spot ether to shorten its perpetual futures to get tokens of the ‘forked ‘ version of Ethereum 2.0 for free. Many analysts expected to see that trade unwind after the Ethereum Merge. Jason Lau even deemed it as a dead trade.
The Ethereum Merge is but a step in a long series of upgrades. This movement will lead to more scalability and changes within the crypto network. So far, it has already caused a buzz within the crypto market. We are yet to see how far it will take us but remain open-minded. For more details concerning what to do as an investor, the below link will aid you or give you a direction on where to go.