Last week, news of the Ethereum Merge has been spreading across the market. On 11th August, Ethereum developers declared September 15 -16 as the official date for the Merge. The report has been stirring action for several crypto assets. The developments surrounding the Merge seem to heighten derivatives activities as more traders bet on Ether (ETH). The date was provided through a Consensus Layer Call. Ethereum's core developer, Tim Beiko, also confirmed the news saying that the targeted Total Terminal Difficulty is 58,750,000,000,000,000,000,000.
After the TTD hits the difficulty level needed to mine the final Ethereum block, the network will transition from a proof-of-work consensus to a proof-of-stake consensus. Perhaps the value of The Merge is already priced into ETH today. After a brutal start to 2022, a near 100% gain in just a matter of weeks might be all that investors feel Ethereum is worth.
The American billionaire investor and owner of the Dallas Mavericks – Mark Cuban – believes Ethereum's transition from a Proof-of-Work consensus mechanism to Proof-of-Stake could be a double-edged sword. In his view, the investors' excitement surrounding the move could surpass the actual use-cases of "the Merge" and create a "sell the news" event.
Cuban also argued that applying regulations in the crypto space is a vital step that global regulators need to enforce. Investors are looking for maximum protection, and, if granted, many will enter the digital asset ecosystem and drive the sector forward.
Investors will want to get a piece of Ethereum at prices today, and we could see ETH rise in the days before The Merge launches. As investors witness a successful transition occur, they might take some profits, causing Ethereum to slide. But over those next weeks and more likely months, activity on the Ethereum blockchain will rise as developers and users flock to take advantage of higher speed and lower fees.
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