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New institutional optimism surrounds the blockchain Ethereum’s Ether token, which appears to have reversed its negative trend and is now regaining market value after an almost continuous 11-week decline. The Ethereum token has rebounded after falling below $1,000 during June and today trades above $1,400.
During July, the coin gained almost $400 in value. Despite a slight decline during the last day, the crypto community continues to be optimistic about the positive trend shown by the Ether token. Concerning Bitcoin, its main rival, Ether, has appreciated by 40%.
The news of the Ethereum merge, where the cryptocurrency’s blockchain will transition from a Proof of Work (PoW) to a Proof of Stake (PoS) protocol, has not discouraged crypto-investors from putting their savings back into the Ether token.
According to market analyst Michaël van de Poppe, the Ethereum token could continue to rise in price at a higher rate than Bitcoin, and the crypto is expected to gain “momentum as we move into the merge in September.”
The Ethereum merge has caused controversy in the blockchain community. While PoS advocates argue that this transition decreases the amount of electrical power consumed by the network to operate significantly, PoW advocates say that this transition comes at the cost of weakening the security of the Ethereum blockchain and decreasing the efficiency of token mining.
Although some investors fear that the U.S. economy is entering a recession, cryptocurrencies such as bitcoin and Ethereum appear to be recovering from this year’s run and being snapped up as haven assets by some investors concerned about a decline in financial market yields on account of the Federal Reserve’s interest rate hike.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica