Is ETH Merger the good news that the crypto world is waiting for?
If you are into crypto then you may be aware of what is happening with ETH.
ETH is preparing to move from POW proof of work to POS or proof of stake.
What this means for ETH and the ETH based crypto tokens
This could possible mean a lot lower gas fee for ETH transactions.
This would also mean lower fee for token transactions built on the ETH network.
This could spark a lot of activity and enthusiasm to carry out trades staking and staking some eth based token had become quite unattractive at some point when the ETH fees had gone through the roof.
A few months back it was touching almost $40 as ETH gas fee.
Hodling and staking would get more rewarding
As ETH becomes a POS coin it would be possible to stake it and earn a staking reward without exposing the staked asset that is ETH in this case to impermanent loss.
Would it be good for crypto market in general ?
At any given point in time there are positive as well as negative news in the market.
However during a bear phase it is the bad or negative news which gets the spotlight and causes a negative reaction.
Similarly when the markets tend to move and respond to the positive news thinks tend to shift in the positive territory.
Europe is looking towards crypto as a way to boost its economy.
The economic slow down is evident every where and the war in Europe , the food shortage and the economic effect of war and inflation is taking a toll on the Europe which has been sliding against the USD.
With few avenues to grow their portfolios people in Europe are seriously looking at crypto this should be a positive boost for the markets.
The Not so good
With ETH moving from POW to POS the miners who were mining and earning good money with ETH mining would have to look else where and utilize their mining power in mining other coins.
My closing thoughts
The bear market and the down trend has been a long one and a relief rally is due and a much needed relief.
The green on the charts is a positive relief though fresh investments must be made after doing due diligence and research.