♛ ETHEREUM - The Queen's HUGE Crypto move (the Merge)
♛ If you don't have a lot of time just read the synopsis at the end ♛
Analytically:
Trends and fundamentals suggest positive outlook in spite of macro worries. This could be Ethereum's time to shine!
Let's dive into the effects the merge will bring forth on Ethereum and liquid staking providers. Specifically, we project Ether’s deflationary issuance and staking rewards, and the secondary effect on liquid staking revenues.
The Ethereum merge:
🕛The long-awaited shift to proof of stake has finally been revealed to launch on September 6, 2022.
🥐There will be two stages for Ethereum merge to be public in the crypto market- the first stage, Bellatrix, happening on September 6 and the final stage, Paris, happening between September 10 and September 20.
(Sounds very French to me, let's hope it's like French wine, cheese or perhaps a French kiss...)
ETH’s can outperform versus other crypto-assets since the merged has been designed and decided to:
👉improve fundamentals
👉improve macro conditions that are driving the broader trends.
✴️ One of the reasons driving ETH higher into the merge is its reduction in issuance that will come once it moves to proof of stake.
While inflation in global economies remains at high levels, ETH will likely become the largest deflationary currency✴️
👉The amount of Ether issued will drop by approximately 90% as it will no longer be needed to incentivize miners
👉Following the implementation of EIP-1559 a year ago, 80% to 85% of transaction fees get burnt, which is likely to lead to more ETH getting burned than issued
👉Based on 2022 fee data, this would suggest Ether’s inflation will range between -0.50% and -4.50% following the merge
👉Simultaneously, fees that are not burnt will no go to those staking ETH in order to incentivize greater network security since they will be validating consensus.
👉This will make it significantly more attractive to stake ETH ✴️
6% to 7% Yields —
⭐Returns from staking ETH will climb significantly from the current 3.9% level
👉Higher staking yields incentivize more ETH being staked
👉This leads to greater security, since it becomes more costly to acquire 51% of the ETH staked
👉Therefore, the economic benefits coming from the merge have a real impact on the network
👉As a second order effect, higher yields will lead to greater revenues for liquid staking providers such as Lido.
(Those staking ETH will not be able to withdraw their funds until 6–12 months after the merge when the Shanghai fork takes place)
🎊 Overall, the merge poses great economic benefits for Ether holders.
These translate into greater security, while also making the network more eco-friendly.
Ultimately, this sets the base for one of crypto’s most anticipated internal catalysts, even if external conditions may weigh down on this milestone.
♛ Synopsis:
♛ Miners are going away
♛ Ethereum goes eco-friendly (vs Bitcoin doesn't)
♛ Ethereum becomes more deflationary than Bitcoin
♛ Moving to a PoS system could help Ethereum compete with Solana, ADA and the rest of newer blockchains
♛ In other words, Ethereum is making serious moves to adopt and try to dominate over Bitcoin and the Alts
♛ Bigger yields will attract bigger/more investors (funds...)
☣️☠️⚡
Time to talk about the risks:
These kind of upgrades/merges can face problems. smaller or Bigger ones. Be aware, DYOR and make your own decisions like a grown up.
Remember though: Ethereum is a SERIOUS player, don't expect 'anything like Luna' to happen. It's not going to. Ethereum is here to stay and it's improving Big Time.
One Love,
the FXPROFESSOR
💹chart says buy now, if it dips buy at 1350 support, if it goes lower than that look here for a new chart
Analytically:
Trends and fundamentals suggest positive outlook in spite of macro worries. This could be Ethereum's time to shine!
Let's dive into the effects the merge will bring forth on Ethereum and liquid staking providers. Specifically, we project Ether’s deflationary issuance and staking rewards, and the secondary effect on liquid staking revenues.
The Ethereum merge:
🕛The long-awaited shift to proof of stake has finally been revealed to launch on September 6, 2022.
🥐There will be two stages for Ethereum merge to be public in the crypto market- the first stage, Bellatrix, happening on September 6 and the final stage, Paris, happening between September 10 and September 20.
(Sounds very French to me, let's hope it's like French wine, cheese or perhaps a French kiss...)
ETH’s can outperform versus other crypto-assets since the merged has been designed and decided to:
👉improve fundamentals
👉improve macro conditions that are driving the broader trends.
✴️ One of the reasons driving ETH higher into the merge is its reduction in issuance that will come once it moves to proof of stake.
While inflation in global economies remains at high levels, ETH will likely become the largest deflationary currency✴️
👉The amount of Ether issued will drop by approximately 90% as it will no longer be needed to incentivize miners
👉Following the implementation of EIP-1559 a year ago, 80% to 85% of transaction fees get burnt, which is likely to lead to more ETH getting burned than issued
👉Based on 2022 fee data, this would suggest Ether’s inflation will range between -0.50% and -4.50% following the merge
👉Simultaneously, fees that are not burnt will no go to those staking ETH in order to incentivize greater network security since they will be validating consensus.
👉This will make it significantly more attractive to stake ETH ✴️
6% to 7% Yields —
⭐Returns from staking ETH will climb significantly from the current 3.9% level
👉Higher staking yields incentivize more ETH being staked
👉This leads to greater security, since it becomes more costly to acquire 51% of the ETH staked
👉Therefore, the economic benefits coming from the merge have a real impact on the network
👉As a second order effect, higher yields will lead to greater revenues for liquid staking providers such as Lido.
(Those staking ETH will not be able to withdraw their funds until 6–12 months after the merge when the Shanghai fork takes place)
🎊 Overall, the merge poses great economic benefits for Ether holders.
These translate into greater security, while also making the network more eco-friendly.
Ultimately, this sets the base for one of crypto’s most anticipated internal catalysts, even if external conditions may weigh down on this milestone.
♛ Synopsis:
♛ Miners are going away
♛ Ethereum goes eco-friendly (vs Bitcoin doesn't)
♛ Ethereum becomes more deflationary than Bitcoin
♛ Moving to a PoS system could help Ethereum compete with Solana, ADA and the rest of newer blockchains
♛ In other words, Ethereum is making serious moves to adopt and try to dominate over Bitcoin and the Alts
♛ Bigger yields will attract bigger/more investors (funds...)
☣️☠️⚡
Time to talk about the risks:
These kind of upgrades/merges can face problems. smaller or Bigger ones. Be aware, DYOR and make your own decisions like a grown up.
Remember though: Ethereum is a SERIOUS player, don't expect 'anything like Luna' to happen. It's not going to. Ethereum is here to stay and it's improving Big Time.
One Love,
the FXPROFESSOR
💹chart says buy now, if it dips buy at 1350 support, if it goes lower than that look here for a new chart
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