by Bitcoin and Solana have continued on the path of their rally amidst the general crypto market recovery. They both saw more positive lines and added 10% in the outgone week. But Ethereum, on the other hand, has continued to dip further while the community and the wider crypto market expect its Merge upgrade.
Continued Crypto Rally
The Ethereum Merge update is the transition of Ethereum’s operating network from the proof-of-work mechanism to the proof-of-stake mechanism. The Merge will improve Ethereum’s scalability and its power efficiency among other improvements. Importantly, the new Ethereum protocol would no longer need miners to create any Ethereum blocks, they would rather be replaced by network validators.
Bitcoin has gained 0.5% over the course of 24 hours and it trades at $22,286 as of 4:00 p.m. in Asia. Solana maintained its position and large gains to remain among the first ten digital assets by its market capitalization, and it rose by 8.7%.
However, Ethereum retained its position on the losing trajectory as it lost 2.3% and currently sells at $1,716 as reported by CoinMarketCap. The asset’s decline has been ascribed to its coming proof-of-work upgrade. The market is being cautious and monitoring events around the upgrade that is scheduled to be finalized on Thursday.
The coming Merge is generally agreed to be a positive move for Ethereum, but it is currently creating uncertainties as investors decide to wait and see how things unfold. This is the explanation generally offered by crypto analysts.
Expecting Ethereum’s Merge
Metalpha’s Head of Business Development, Roger Zhou, said the biggest factor exerting much influence on the price of Ethereum is the expected Merge. He said further that provided the Merge is executed as planned, the Ethereum price will pick up the pace again.
Tuesday’s biggest loser in Asia is the TerraClassicUSD token which went lower by 18.7% on the day. This comes after the token recorded huge gains in the past week. The Terra system’s legacy asset saw reasonably good speculation and uptick in the past week, but all seem to have faded now.
The Nasdaq and S&P 500 indexes went up on Monday as they gave clues that the consumer price index for August, which will be released on Tuesday, might come with positive numbers. Gains recorded in Nasdaq and S&P 500 usually have a correlation with increased Bitcoin prices.
Stock markets in Asia were relatively calm on Tuesday. The Japanese Nikkei had a 0.25% gain. Shanghai’s Composite index rose by 0.05% after resuming from a break on Monday. The Hang Seng in Hong Kong dropped 0.16%.
