Ethereum takes market share from Bitcoin ahead of the merger
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Ethereum takes market share from Bitcoin ahead of the merger

In anticipation of the “fusion” (merge) of the Ethereum network, as part of which the transition of the Ethereum blockchain from the proof-of-work algorithm to the proof-of-stake will take place, the second largest cryptocurrency by capitalization began to push the market leader on the cryptocurrency market – bitcoin.

    Credit: REUTERS/Dado Ruvic

Image source: REUTERS/Dado Ruvic

According to data outlet CoinMarketCap, Bitcoin’s share of the cryptocurrency market has fallen to 39.1% from a peak of 47.5% in mid-June this year, while Ethereum’s share has risen to 20.5% from 16%. Remember that in January 2021, Bitcoin dominated with a 72% market share, while Ethereum had just 10%.

Ethereum alone is currently worth 0.082 BTC, which is close to the December 2021 highs and well above its this year’s low of 0.049 BTC in June.

Joseph Edwards, head of financial strategy at fund management company Solrise Finance, noted that investors are now viewing Ethereum as a safe haven due to the network’s success.

The “merger”, which is expected to take place on Thursday after several postponements, is expected to lead to a wider use of the Ethereum blockchain, which could have a positive impact on its price.

Bitcoin and Ethereum have almost halved since the start of the year as investors fear a sharp hike in interest rates by central banks. However, the upcoming “merger” has had a positive impact on the price of Ethereum, which is up more than 90% since June 19, while the price of Bitcoin is up around 20%.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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