Here’s How And Why Ethereum Driven The Cryptocurrency Higher This Weekend





What happened ?

Saturday was a wild trading day in the market for cryptocurrencycurrencies and the day is only a little over half. At around 11:45 a.m. ET, Ethereum (ETH 14.04%) quickly jumped around 10% and those gains made their way to other cryptocurrencies.

As of 3 p.m. EST, Ethereum is up 6.8% on the day, and from its low to its high, it is up a whopping 19.5%. Solana (SOL 10.55%) is up 5% in the past day but is up 11.6% from low to high. On the same topic: Price of Ripple (XRP), Solana (SOL) and Ethereum Classic (ETC) – Analysis of the cryptos of the day. Finally, Arweave (AR 9.77%) is up 12.9% in the past 24 hours.

And then ?

The cause of this surge seems to be that large buyers, known as whales, are increasing their positions in Ethereum. This may interest you: Cardano (ADA) Anticipates Next Vasil Hard Fork Update. Blockchain analytics firm IntoTheBlock reported Friday that the largest holders of Ethereum (1%) have increased their holdings after the “merger” was tentatively slated for September.

“The merger is the shift from a proof-of-work-type consensus mechanism to a proof-of-stake mechanism, meaning the revenue stream for confirming blockchain transactions will shift from miners performing calculations to strikers, who simply “play in” their Ethereum. Today’s speculation could be that major buyers are going to stake Ethereum and pull it off the exchanges.

It is likely that other cryptocurrencies followed Ethereum higher as investors followed the whales in the market. In a volatile market like crypto, momentum can lead to more momentum in trading.

The following ?

Today’s move doesn’t seem to be driven by any real fundamental change in the crypto market, but overall there is good news. If the “merger” is completed this fall and results in lower fees and faster transaction speeds on Ethereum, the cryptocurrency industry as a whole will be better off. See the article: Shiba Inu and Solana tokens lead to gains as bitcoin surges above $47,000.. Ethereum has the most developers and many cryptocurrencies are just tokens on Ethereum, so a faster core blockchain would be good for everyone.

That said, I think today’s move is mostly noise for long-term crypto investors. A movement that happens so quickly can fade quickly, and we’ve seen part of the doll fade.

What I will keep an eye on in the coming months is the changing regulations and ongoing liquidations by cryptocurrency lenders. Regulatory certainty could actually help the industry in the long run, and ending bankruptcies and liquidations of lenders could be good news for crypto markets as a whole.

I remain optimistic about cryptocurrencies and their potential for disruption in the tech realm. Blockchain is one ledger for data, and developers who can capitalize on this opportunity can open up new opportunities for innovators. This one innovation will help cryptocurrencies, but the path will be riddled with pitfalls

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Thomas Estimbre
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