Will Ethereum Merge increase price?

Will Ethereum Merge increase price?

There are 3 Reasons why you should buy Eth before the Ethereum Merge a few hours from now. But will there be an increase in price after the Merge? Read on

Ethereum Merge will lead to an increase in TVL share for Eth

Once the Proof of Stake mechanism is implemented on the Ethereum blockchain, TVL share is likely to rise. In fact, after the Ethereum Merge schedule was announced, the Total Value Locked (TVL) on Ethereum rose from $30.3 B to $31.9 B.

  • AVAX, TVL is down from $2.3 B to $1.5 B
  • Solana, TVL is down from $1.55 B to $1.33 B
  • Cardano, TVL is down from $110 M to $86 M

The only blockchain to have performed better is Tron which is in our list of best crypto invest in 2022.

Ethereum Merge will lead to Ethereum Deflation

In the old POW mechanism, the supply of ETH was increasing at an approximate rate of 4% per year. In the POS mechanism, it is likely to fall by about 1% per annum. [Range of +0.5% to -1.0%]. This will improve ETH ROI by a small margin every year instead of reducing the ROI.

Ethereum Merge: Ethereum is a great investment anyways

Ethereum has a tremendous track record so far delivering gains in most of the years. The Outlook was bright for Ethereum as most anticipate blockchain adoption to rise over the next few years. While prices have been volatile this year owing to Liquidity and Ukraine, blockchain use cases have only increased.

So Will Ethereum Merge increase price?

  1. Ethereum Merge has already led to an increase in Price. Ethereum is up 47% since the day The Merge was announced
  2. While short positions have risen significantly, much of it looks like a hedge in case Eth Merge failed or Eth price drops in the next few days/ weeks
  3. Trading Volume is not showing any build-up that can drive the price higher
  4. Social Media sentiments are very positive for the Merge but there is no appreciable rise in positive feelings for Ethereum because of the Merge

In sum, there is no evidence of a likely pump in Eth price soon after the Merge. The pump, if any, will be small and short-lived. Other macroeconomic factors are driving cryptocurrency prices at the moment and that will remain so until the Ukraine-Russian conflict comes to end. As outlined earlier, Ethereum is a good investment anyway.

Read here: Myths of the Merge

Will Ethereum Merge increase price?

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.