Friday, February 23, 2024

Last Chance to Buy Ether before Historic Transition to PoS.

Traditional Ether enthusiasts and investors are busy buying the world’s second-most popular cryptocurrency to mark the Ethereum network’s historic transition to a proof-of-stake (PoS) consensus mechanism.

Ether, in the past three months, has jumped 32% dramatically outperforming the popular Bitcoin which has dropped 9%. Analysts believe the anticipation around the Merge helped pump up the price.

Katie Talati, the head of research at Arca, says post-merge the bull case for Ethereum is going to be a lot stronger for a number of reasons. She said the main factor is that supply is going to come way down, creating scarcity. The Merge will see the Ethereum network consume 99% less energy to verify transactions. The PoS model requires validators on the network to put up their ETH tokens, or stake them – essentially pulling them out of circulation for an extended period of time.

Talati pointed out that there is no defined guidance yet from developers on Ethereum. She added that for six to 12 months, users will not be able to withdraw their Ether if they have staked it to validate the network.

Jaydeep Korde, CEO of Launchnodes, says whether to buy now or wait and see how the Merge goes depends on an investor’s time horizon for holding the coins. He told CNBC that traders who plan to sit on their stake for a long term, probably two to three years, should be in good shape. For those looking for short-term, Korde said it’s much more volatile. He highlighted global economic conditions, geopolitics, and inflation as having an immediate risk. He believes Ethereum, like every other asset class, will suffer the challenges of that volatility.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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