A Croissant Explains Ethereum’s Hottest Trends After the Merger

Ethereum trends are higher as it has reclaimed the midrange at around $3,000. The second-largest cryptocurrency by market capitalization ranks as the third best performing cryptocurrency in the top 10 by market capitalization.

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At the time of writing, Ethereum (ETH) is trading at $3,400 with gains of 7% and 19% in the latest 24-hour and 7-day chart. Only Cardano (ADA) and Solana (SOL) outperform in this ranking with 39% and 26% gains respectively.

ETH is moving upwards on the 4-hour chart. Source: ETHUSD trading display

The crypto market in general is on an upward trajectory thanks to the relief of macroeconomic factors. Trading firm QCP Capital believes the rising price action stems from the positive response to interest rate hikes by the US Federal Reserve (FED).

The financial institution began to tighten its monetary policy and hint at further rate hikes. Bitcoin and Ethereum reacted on the upside as the FED traded within expectations and investors felt more clarity.

In addition, the price of ETH appears to be benefiting from the seemingly imminent bet of “The Merge”. An event has been set up to combine Ethereum’s execution layer with the consensus layer and fully unlock the network’s Proof-of-Stake (PoS) potential.

As ETH plans to reduce its power consumption and implement new scaling solutions, a pseudonymous analyst named CroissantEth tried to break through these “fundamental changes” in the network. In addition, the analyst tried to point out the new trends to watch as Eth 2.0 comes into the picture.

the analyst said

, 2.0 ? New. Not just. We’ve already talked about ETH 2.0. In this thread I will focus specifically on game changers. Things that are only made possible thanks to ETH 2.0 and the upgrades it introduces.

Ethereum to enter a new era

Topping the list, and one of the reasons Ethereum has seen a surge in institutional interest, the analyst cited the possible introduction of staking pools for ETH. The asset will increase its potential as a revenue generator and holders can earn transaction fees and additional rewards.

This could potentially impact ETH adoption levels and increase the number of inactive users. In addition, the analyst highlighted the introduction of staking derivatives that could provide users with further incentives to lock down ETH.

This could contribute to ETH as a deflationary asset story and potentially trigger a supply shock for this digital asset. Rewards and incentives along with scalability will be a big part of Eth 2.0. About the latter, the analyst said:

Cross-chain stuff is cool and all, but what about cross-rollup tooling? This is something that people haven’t been paying close enough attention to. dApps bridging the gap between optimistic and zkrollups have a great future ahead of them.

Optimism and Zero-Knowledge (ZK) Proofs technology could potentially enable Ethereum to scale and process thousands of transactions per second. This has been the main driver for ETH “Killers” but the trend could reverse if people have access to cheaper ETH trades.

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The analyst mentioned other trends that have the power to move Ethereum into a new era of adoption and new use cases. Croissant concluded:

Everything I’ve written in this thread could be the spark we need for the next big run. If it pans out accordingly, we’ll have a refreshing new chapter for ETH. These aren’t things you want to ignore… I hope everyone enjoyed this thread!

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