Ethereum is among the strongest cryptos of 2021, its price climbing more than 437% since the start of the year. It is also one of the more expensive cryptocurrencies, valued at just under $ 4,000 at the time of publication.
Additionally, the process of upgrading from Ethereum to Ethereum 2.0 has been ongoing throughout 2021 and will continue through 2022. The Altair upgrade was enabled on the mainnet on October 27. The upgrade to the Ethereum beacon chain tests the transition to proof-of-stake (PoS) block mining.
Finally, the Ethereum backbone will merge with the Beacon chain in 2022, to complete the Ethereum 2.0 upgrade.
A neglected factor
Macro-investment strategist Lyn Alden estimated in an interview that the aforementioned ‘under the radar’ catalyst could boost ETH in the coming year, adding:
“The thing I’m looking at is the Ethereum foreclosure contract. They started the Beacon chain about a year ago, and they’re doing this staking contract, and it’s one-way. Once you’ve locked the pieces, they’re there until something changes or until a merge happens.
She further stated, “Bitcoin is exiting trade pretty quickly, but Ethereum is exiting even a little bit faster in part because it is entering this contract,” adding: “… you have an illiquid supply in formation and As long as this persists, it is a pretty strong bullish variable.
According to distributed ledger explorer, Etherscan, crypto investors blocked 8,808,738 ETH worth $ 35 billion in the smart contract. Those who deposit their ETH in the smart contract seek to be validators of the next iteration of Ethereum
And after that?
That said, the executive is slightly worried. Here’s why.
“I think once this is merged and unlocked it could be a liquidity event. Some of these coins generate quite large profit, and some people might want to take profit off the table. I would be more uncertain after the merger.
She further mentioned,
“Ironically, this could be one of those selling news events, where a lot of anticipation builds up, and then maybe it’s kind of a catalyst to calm down for a while.”
Therefore, a sales event could take place.
Overall, it’s fair to say that the merger is a highly anticipated event for Ethereum. Different analysts have had high hopes for the same. At the time of going to press, ETH has been trading below the $ 4000 mark for some time now. It remains to be seen whether the merger will have a positive impact on its value.