Analysts of the ASTL investment project and Astol Advanced Limited investment fund assessed the prospects for the largest altcoin by capitalization after its transition to a new algorithm that does not involve mining.
On the morning of September 15, The Merge was updated on the Ethereum network. As a result, the cryptocurrency switched from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Now the security of the blockchain is provided not by miners, but by validators – users who deposited and blocked their share of coins (staking).
The successful transition of the cryptocurrency network to PoS was confirmed by its founder Vitalik Buterin. Ethereum mining difficulty and hashrate dropped to zero, according to CryptoQuant. This means that miners are no longer mining the largest altcoin by capitalization. According to the developers, there were no failures or errors during the update process. In addition, the same Buterin, for unknown reasons, could not hide his fun, talking about the behavior of cryptocurrency miners on the network, since the hashrate of the Ethereum network did not evaporate before the merger and even fell by 15%.
Now miners will stop selling large amounts of Ethereum in order to ensure the mining process itself, said Konstantinas Sizovas, CFO of the ASTL project. According to him, validators will massively freeze assets, and there will be no need for prompt sale of earned tokens. “Over time, the supply on the market will gradually decrease, which will positively affect the price of the token,” Andjei Korotkewič, CEO of the ASTL project, is also sure. He called the high quotation of Ethereum in the media for the next few weeks as another positive factor. A priori, it is believed that project discussions will attract more attention, which will indirectly affect demand.
“The long-term prospects for Ethereum are very positive, we believe in new price highs and serious attempts to compete for the first position in terms of capitalization in the cryptocurrency rating in the next 2-3 years,” Konstantinas Sizovas predicted.
The Ethereum rate did not respond to the successful update – as of September 15, 12:00 Moscow time, the altcoin is trading at $1.6 thousand, over the past day it has fallen in price by 0.2%. Apparently, the explanation for this phenomenon is that investors were afraid of surprises during the transition, but everything went well. According to experts from Astol Advanced Limited, Ethereum’s dynamics follow logically from the fact that the market continues to be under pressure amid the publication of US inflation data for August. The data was published on September 13, after which the financial markets, including cryptocurrencies, declined.
“Cryptocurrency is a risky asset, so the future of Ethereum and other tokens will directly depend on the dynamics of stock indices and American statistics. The main enemy of risky assets is the increase in rates by Central Banks and the rally of the dollar,” Andjei Korotkewič warned.
In the meantime, many exchanges have resumed withdrawing Ethereum after being suspended for the duration of the Merger. Cryptocurrency platforms Binance, Kraken, and Poloniex, which have ceased operations during the blockchain update, announce a partial restoration of services as a precautionary measure to ensure the protection of customer funds.
The part of the community that supports mining is waiting for the launch of the PoW version of the network in the coming hours. The EtherumPow (ETHW) development team has announced plans to launch the blockchain within 24 hours of the Ethereum mainnet transition to the Proof-of-Stake protocol.
In such conditions of high market volatility and “tremor” of cryptocurrency rates, higher interest rates of the Fed and the ECB, high inflation and even higher inflationary expectations, the most reliable and stable way not only to keep your funds in cryptocurrency, but also to increase them is to invest in the ASTL project with stable ROI payments of up to 18% per annum on the initial investment, not dependent on crypto market fluctuations, and in a stable cryptocurrency – USDT.