The Ethereum merger of Proof-of-Work (PoW) to Proof-of-Stake (PoS) is now about 30 days away after what feels like years of anticipation. While price action is the mainstay of speculation, anticipation of ‘The Merge’ continues to grow – and so does ETH’s market dominance.
New data shows Ethereum continues to gain ground as merger approaches; let’s see what the numbers reflect as we count down the weeks.
ETH . Market Share Growth
Speculation surrounding the exact timing of the merger has long been a staple of conversations in crypto, but has recently been curtailed following the adjustment to Ethereum’s overall terminal difficulty, according to a tweet from one of crypto’s most notable names, Ethereum. co-founder Vitalik Buterin:
The terminal’s total difficulty is set to 587500000000000000000000.
This means that the ethereal PoW network now has a (roughly) fixed number of hashes to mine. https://t.co/3um744WkxZ predicts that the merge will happen around September 15, although the exact date will depend on the hashrate. pic.twitter.com/9YnloTWSi1
— vitalik.eth (@VitalikButerin) August 12, 2022
This results in a static setting of hashes for the chain to mine, and results in a much more limited perspective on when the merge can take place. The Bordel tool Vitalik cites still estimates a September 15 merger at the time of publication.
This anticipation has led to strong market share growth that has been unprecedented in recent months, according to data from Arcane Research:
This has mainly been at the expense of BTC, which has fallen in weekly percentage points, while ETH is showing substantial growth. BTC has shown the weakest gains so far in August compared to large, mid and small cap indices. According to Arcane Research, ETH’s market share is eclipsing 20% today — compared to about 14% just 60 days ago.
Ethereum's long-anticipated merge to Proof-of-Stake is roughly one month away, and price action has reflected growing anticipation after a lackluster year for crypto prices at large thus far. | Source: ETH-USD on TradingView.com
We’ve covered several perspectives as we look at the Proof-of-Stake merger, including a piece on why exchanges like Coinbase will briefly pause ETH trades during the merger, as well as price action in spot markets versus futures markets of late.
As is often the case, speculation is at the forefront when it comes to what we could see out of ETH in the second half of the year after the merger. Proof-of-Stake has been touted as the highly anticipated sustainable solution to Ethereum that can praise the blockchain as a now eco-friendly powerhouse that unlocks solutions for NFTs, DeFi, and more.
In addition, price effects aside, the consensus switch has been the mainstay of the expected growth around chain decentralization (with added accessibility, and thus more miners) and faster transactions per second (TPS).
Will the consensus adjustment be everything it used to be? If so, expect ETH’s market share to continue to grow aggressively.
Featured image from Pixabay, Charts from TradingView.com The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.