Topics
cryptocurrency | Ethereum upgrade | crypto trading
Raghav Aggarwal | New Delhi Last Updated at September 9, 2022 15:23 IST
https://mybs.in/2b0Zd3u
Cypto investors saw a renewed interest in the crypto markets in the last seven days with 'Merge' approaching. The crypto market cap breached the $1 trillion mark after two weeks, Bitcoin rose 3 per cent and Ethereum rose over 6 per cent. However, experts believe that the investors must continue the wait-and-watch approach.
"It is advisable to have a long term approach on the crypto market with a buy on dips strategy in strong tokens only," Dileep Seinberg, founder & CEO of bill payments and utility crypto platform, MuffinPay said, "There are rate hikes and liquidity is being pumped out of markets, which does not bode well for riskier assets."
The impact of inflation and rate hikes, Seinberg said, will not impact a particular cryptocurrency but the market overall. "Talking about the crypto winter or the rate hikes, it will not impact any token in specific, it will cast a spell on the market across," he said.
With Ethereum's Merge, scheduled for September 14, the energy consumption in mining these coins is expected to reduce by 99 per cent. It will change Ethereum's mechanism from current proof-of-sale (PoS) to proof-of-work(PoW). As the miners are now shifting their focus on other Proof-of-work (PoW)-based coins, the value of other crypto assets rose.
"The anticipation building up for the upcoming ETH merge that is expected on the September 12-15 led to a 6 per cent rise this week while other PoW protocols also reached monthly highs in price and hashrate as current Ethereum miners look to utilize their computing power elsewhere post the merge," CoinDCX research team told Business Standard.
"DeFi led the sectoral returns appreciating 15 per cent this week led by a revival in the Luna ecosystem and due to an over-utilisation of crypto collateral in DeFi protocols in anticipation of the upcoming Ethereum Merge," it added.
Ethereum will be on the radar of the investors, however, it may not perform as good as it is expected to.
"When Ethereum's much awaited Merge was announced, there was a sudden spurt in the prices, which fizzled out later," Seinberg said, "Even after the Merge and during the near term, it will be on the radar of the crypto community, who is treating it as a get rich quick scheme which is not true."
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
PREVIOUS STORY
NEXT STORY
Copyrights © 2022 Business Standard Private Ltd. All rights reserved.
Upgrade To Premium Services
Business Standard is happy to inform you of the launch of “Business Standard Premium Services”
As a premium subscriber you get an across device unfettered access to a range of services which include:
Premium Services
In Partnership with 
Dear Guest,
Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.
Enjoy Reading!
Team Business Standard
