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In what appears to be an example of buying the rumour, selling the crypto news, Ether falls the morning after Ethereum completed its long-awaited merger at 2:42 a.m. EST.

After jumping nearly 3% immediately after the network completed its transition from an energy-intensive proof-of-work system for processing transactions to a proof-of-stake setup that will virtually eliminate its carbon footprint, the asset declined down around 0.8% over the past 24 hours, trading at $1,589.70.

This move is not surprising as crypto is used to selling big news and ether jumped over 30% ahead of The Merge as it became more likely. There has also been a recent increase in ether deposits on crypto exchanges, according to data from Glassnode. A deposit rush is usually a bearish signal, as long-term holders prefer to have their assets off-exchange and in the safety of direct custody. However, part of this increase could be due to Ether holders anticipating the receipt of free tokens from an expected Ethereum shard, called ETHPoW, which aims to pursue a version of Ethereum with its proof configuration. of work. Anyone who owned Ether at the time of the split would be eligible to receive these free tokens. Given questions about the long-term viability of ETHPoW, many recipients may be looking to sell immediately upon receipt. The easiest way to do this would be to receive them directly on exchanges that plan to list the token.

Other recent examples include bitcoin hitting highs just below $70,000 twice in 2021, first in April when Coinbase went public via a direct listing on the New York Stock Exchange, and then again in the fall. when the CME group
CME
listed the first bitcoin futures ETF, the ProShares Bitcoin
BTC
Strategy ETFs.

Ether also trails most major competitors including solana, cardano, algorand, avalanche, and polkadot this morning, although all are down post-transition. These proof-of-stake tokens are most at risk from Ethereum’s completion of The Merge, which not only puts it on par with their respective platforms in terms of carbon footprint, but also because the next A series of planned Ethereum updates called Surge, Verge, and Purge will make the platform more efficient and aim to increase its throughput from a few dozen transactions per second to 100,000.

Other more notable digital assets are positive after the news. Ethereum Classic, a fork of the original Ethereum blockchain that maintained its proof-of-work setup, has grown 6.69% since the merger and 165% over the past three months. Ethereum Classic has seen a massive increase in mining activity as Ethereum miners search for new platforms to support. Blockchains like Ethereum Classic, Ravencoin, Beam and others are compatible with Ethereum’s GPU-based mining equipment, although none seem to be able to profitably absorb the amount of computing power currently available. Bitcoin uses a different type of hashing algorithm and requires a more specific type of computer chip for mining, making it a non-option for Ethereum miners.

Additionally, LDO, a governance token used to operate the Lido liquid staking platform, which provides instant liquidity to ether stakers rather than having tokens locked in the platform for 6-12 months, also increased by 4.31%.

Additionally, bitcoin is up a slight 0.12% since The Merge.

Additionally, bitcoin is up a slight 0.12% since The Merge.



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