Here’s how and why Ethereum drove the cryptocurrency higher this weekend

What happened ?

Saturday was a wild day of trading in the market for cryptocurrencies and the day is just over half. Around. 11:45 ET ET Ethereum (ETH 14.04%) quickly jumped around 10% and these gains reached their way to other cryptocurrencies.

From kl. 15 EST, Ethereum has risen by 6.8% on the day, and from its lowest to its highest, it has risen as much as 19.5%. Solana (SOL 10.55%) has risen 5% in the last 24 hours, but rose 11.6% from the lowest to the highest. On the same topic: The price of Ripple (XRP), Solana (SOL) and Ethereum Classic (ETC) – Analysis of today’s cryptos. Finally, Arweave (AR 9.77%) has risen 12.9% in the last 24 hours.

So what ?

The reason for this sharp rise appears to be large buyers, also known as whales, increasing their positions in Ethereum. This may interest you: Cardano (ADA) is rising ahead of its next Vasil Hard Fork update. Blockchain analytics firm IntoTheBlock reported on Friday that Ethereum’s largest owners (1%) increased their positions after the “merger” was tentatively scheduled for September.

“The merger has shifted from a proof-of-work type consensus mechanism to a proof-of-stake mechanism, meaning that the revenue stream for confirming blockchain transactions will shift from miners performing calculations to stakers who simply “puts into play” their Ethereum.Today’s speculation may be that large buyers will bet Ethereum and pull it out of the stock markets.

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 does not seem to be driven by any real fundamental change in the crypto market, but in general there is good news. If the “merger” is completed in the fall and results in reduced costs and increased 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 rises 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 move that happens so fast can fade quickly and we have seen some of the pop fade.

What I will see over the next few months is the evolving regulatory environment and continued liquidations from cryptocurrency borrowers. Regulatory security can actually help the industry in the long run, and if there is an end to bankruptcies and lender liquidations, it could be good news for the crypto markets as a whole.

I remain optimistic about cryptocurrencies and their potential for disruption in the technology field. Blockchain is a single ledger for data, and developers who can leverage this capability can open up new opportunities for innovators. This innovation will help cryptocurrencies, but the path will be littered with pitfalls

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Thomas Estimbre
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