Ethereum moves one step closer to the merge – The Average Joe

    Ethereum moves one step closer to the merge

    Victor Lei — Head of Research

    July 7, 2022

    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.

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