Ethereum moves one step closer to the merge
Crypto
July 7, 2022
Ethereum ($ETH) — the second-largest crypto — just took another big step closer to the highly anticipated merge.
The network upgrade will bring Ethereum from proof-of-work to proof-of-stake — and is expected to be one of the biggest catalysts in crypto.
Catch up: Here are the major implications on the price of Ethereum.
But upgrading a network with billions of transactions running through it isn’t easy. Any upgrade errors could be costly.
Ethereum developers are in the process of running three upgrades on test networks:
- They completed the first test on June 8 and the second was successfully completed on Wednesday.
- Now there’s one more test upgrade before arriving on the main Ethereum network.
Since November, inflation, interest rate hikes, recession concerns and crypto liquidations have driven crypto prices. It’s been a long slide down, with Ethereum falling nearly 70% this year.
SBF here to save the day: This week, FTX CEO Sam Bankman-Fried (SBF) said the worst of the liquidity crunch has likely passed.
- SBF is the second wealthiest person in crypto ($24B net worth before the crypto crash).
- SBF stepped in to support the industry with loans to struggling crypto firms — and still has a “few billion” to help struggling firms.
$ETH is up 35% since it fell below $900 back on June 18. The final merge is expected to arrive between August and November.
The Joe’s Take: Don’t get too caught up looking at the short-time price movements and ignore the potential implications of the merge. When crypto prices start moving, they move fast.
