Bankless: Don't Ignore Ethereum Mergers, Not Priced In Yet

Original title: "Don't sleep on the merge [LITE]"

Original source: Bankless HQ Newsletter

Original compilation: 0x711, BlockBeats

Why the merger will happen in June and what it means for ETH What?

There are three months left before the merger

SuperPhiz is an active member of the EthStaker and Rocketpool communities, and pays more attention to the minutiae of the merge than anyone I know (besides the developers themselves).

On the r/EthStaker subreddit, SuperPhiz detailed how the merger will happen in June 5 indicators.

1. The planned "Difficulty Bomb" will arrive in mid-June.

2. Danny Ryan said that there is no need to delay the difficulty bomb.

3、mainnetmerge The readiness list is nearing completion.

4. Developers are picky about latency.

5, Kiln Testnet testing merge.

Barring some major unforeseen issues, we see a growing likelihood of a merger in June.

June.

That means there are only 3 months left.

The importance of this blockchain network upgrade is unprecedented. It may be difficult for latecomers to surpass. Longtime Bankless readers and listeners certainly know about the importance of the merger and its imminence. But I'm not sure the rest of the crypto industry knows, let alone the world outside of crypto.

If Ethereum achieves its goal of becoming the global settlement layer of the Metaverse, the Ethereum merger will become one of the most historic events of our time.

For most people, it doesn't even require registration.

Like many of us Older people recall what it was like to log on to the Internet via dial-up.

Our kids will think it's crazy to transact on Ethereum with PoW consensus.

A hobby of mine Daydreaming: "If $ETH is priced at $x and staking yields x%, how much annual income will I make?" Luckily, you can Use this to calculate, we are here Teach you how to do it.

Most people think ETH will go to $10K or even $20K…

$10k is bearish.

$20k is FUD.

This is so you can Reminder with higher expectations.

Merged ETH

There are currently 10.5 million ETH pledged In the beacon chain, the rate of return based on the ETH currency standard has reached a respectable 4.8%.

Once these 10.5 million ETH are merged with the PoW Ethereum chain, the yield will rise from 4.8% to ~10-15%. 2-3x increase in returns:

1. The incentive to hold ETH is increased by 2-3 times.

2. The incentive to pledge ETH has increased by 2-3 times.

At the same time, new ETH issuance fell by 90%.

Currently, retail PoW miners earn 12,000 ETH per day and are forced to sell a significant portion of it to pay for electricity.

After the merger, PoS validators will earn 1,280 ETH per day, and there is no reason to sell ETH to cover operating costs.

Our daily issuance has been reduced from 12,000 to 1,280 ETH, and our sell pressure has been reduced from thousands of ETH to 0 per day.

How much ETH will be staked due to increased yield? Now that a lot of regular selling pressure is about to dry up, where will ETH come from?

What price is the result?

These answers will appear in approximately 3 months.

Triple halving ends bear market

A common belief among Bitcoin believers is that the Bitcoin halving is what drives the crypto market cycle. Every 4 years, we have a bull market that goes from bitcoin Halving begins. The reduction in Bitcoin issuance reduces the amount of new supply flowing into the secondary market, and as the remaining liquid supply of Bitcoin in the secondary market dries up, a bull market gradually emerges.

If the bitcoin decreases Half-true is the reason for crypto market cycles, then the merger implications of Ethereum would be huge.

1. The Bitcoin halving reduces the new Bitcoin supply by 50%.  

2. The Ethereum merger reduced the new ETH supply by 90%.

The merger has been dubbed the "triple halving" because Bitcoin needs to go through three halvings to produce a supply reduction of the same size.

Bitcoin will take 12 years to do what Ethereum will do in the next 3 months.

If you believe in the idea that Bitcoin halving will spark a bull market, imagine what happens with triple halving.

The last Bitcoin halving was in May 2020, when each Bitcoin block reward went from 12.5 BTC per block to 6.25 BTC per block. At $8,000 per bitcoin, the halving removes $3.6 million of daily selling pressure on bitcoin, making it easier for the price to rise.

Ethereum currently produces about 12,000 ETH per day, or about $30 million in security costs per day. The combined Ethereum output decreased by 10,720 ETH per day, while also eliminating the selling pressure of 1,280 ETH per day. Since stakers do not need to consume electricity, they do not have to sell their ETH proceeds.

If removing daily $3.6m BTC selling pressure is enough to trigger a bull run, then removing daily What happens with the $27M-$30M ETH selloff?

I first expressed pessimism about the crypto market in last week’s weekly roundup, which makes The audience was taken aback.

To me, commodity markets, geopolitical risk, inflation, nuclear war, and the disappearance of all the upward momentum in crypto markets in 2021 are all bearish reason.

I expect the crypto market to develop in a way that completely ignores the consolidated fundamentals that a bear market will suppress all price performance, no matter how bullish an individual asset may be.

This means that the merger has not yet been priced in.

They don't understand its importance and they don't see it coming.

But you heard it here. So when ETH starts to set a new ATH after the merger, I'll repost the link to this post and say:

Bankless told you.

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