The anticipation for the impending network upgrade, “The Merge,” has contributed to the recent rise in the price of Ethereum (ETH -4.03%).
Ethereum engineers said last month that the upgrade was slated to arrive in the middle of September. The Merge will now officially start on September 6 and end between September 10 and September 20.
It is a thrilling time for cryptocurrency investors, and there are a few obvious reasons to think about purchasing Ethereum before The Merge.
1. One of the strongest networks is already Ethereum.
Leaving aside The Merge, Ethereum is already among the industry’s top competitors. It is the most extensively utilized network for decentralized applications (dApps), including NFT markets and decentralized finance (DeFi) initiatives. It is the second most popular cryptocurrency after Bitcoin (BTC -1.97%).
Ethereum already has a lot going for it and is more useful in the real world than many other cryptocurrencies. Ethereum has a stronger chance of seeing long-term growth than Bitcoin, and The Merge will only make that more likely, albeit no one can predict with certainty how it will fare over time.
2. The Merge’s energy efficiency will significantly increase.
Ethereum still employs the time- and energy-consuming proof of work (PoW) mining process at this time. However, The Merge will switch Ethereum to the far more effective proof of stake (PoS) technology.
In fact, the network is anticipated to use around 99.95% less energy following the change than it did with its previous PoW technique. That might offer it a significant edge over Bitcoin, which has received a lot of flak for how much energy it consumes.
3. It will have a stronger competitive edge over smaller networks.
Expanding Ethereum’s capabilities and converting to a PoS architecture may help it become more competitive with newer blockchains.
PoS is already implemented in many smaller networks, giving them an edge over bigger cryptocurrencies like Bitcoin and Ethereum that continue to employ PoW. Ethereum will, however, compete more fairly with networks like Solana and Cardano after it has finished its update.
Before purchasing, evaluate the risks.
There are still hazards involved even if The Merge is a significant move in the right path for Ethereum.
Ethereum is still a speculative investment despite its benefits. Even if Ethereum has the strongest blockchain in the world, it won’t be easy for it to survive in the long term if cryptocurrencies and decentralized networks never get widespread acceptance from the general population. Furthermore, it is still too early to predict how the crypto market will perform in the future.
Additionally, Ethereum may see severe volatility once The Merge is implemented. Although a flaw in the planned update has already been discovered and immediately fixed, there is always a chance that further issues could crop up as the release date approaches.
Updates on Ethereum have a long history of being delayed. The Merge was first scheduled for June, then it was moved to August, and eventually it was postponed until September. While delaying an upgrade is preferable than hastily releasing one and running the risk of significant problems, all of these delays might erode investor trust in Ethereum and allow other cryptocurrencies more time to catch up.