The Ethereum Merge Is Closer, Does It Pose A Threat To Other Altcoins?
The global market is retreating while the crypto market bleeds in anticipation of the Federal Reserve interest rate hike by another 0.75%.
Market participants are hopeful for an Ethereum bull rally once the Ethereum Merge is completed. Also, it’s important to see how other cryptocurrencies will react after the Merge, especially Bitcoin which is scheduled for September 15.
Conversely, the crypto community is also worried about what would happen if the Ethereum Merge goes wrong. The market has already suffered so much since the Terra collapse in May. Now, if the merger goes wrong, it will be an extremely disastrous event for the market.
Meanwhile, a prominent Bitcoin supporter, Samson Mow, claims that instead of boosting the network’s strength, Ethereum developers are focusing on tokenomics. He also says that after the Merge, Ethereum might be hit with regulatory action by centralized exchanges and staking platforms.
Samson points toward the need for validators to stake 32 ETH, which makes the proof of stake (POS) model highly centralized.
Ethereum Merge, A Risk For Bitcoin?
Overall, though there is hope for Ethereum to see a bull run after the Merge, a few investors and traders are worried about its downsides.
A market participant, known as Foss, claims that while everyone has a bullish stance, the Merge might be a downside risk for other cryptocurrencies. This is because of Ethereum’s connection with the Bitcoin price action.
Ahem…..UST10yr bumping up against 3% again.Late August, Sept and Oct are seasonally weak for risk assetsThe #eth merge (Sept 15) has huge downside risk for digital assets yet everyone is bulled up (Correlation traders against #btc ) Be ready for air pockets.— FOSS – Lehman CDS at 9bps in '06, now at 33 (@FossGregfoss) August 19, 2022
Until now, though the market was hit with high volatility, Ethereum has witnessed bullish momentum. As per reports, the Ethereum Merge has successfully progressed by 96.55% and would be completed by September 15.
At the time of writing, ETH is trading at $1,640 after a pullback of 6.25% over the last 24hrs.Source