What to Anticipate in the Ethereum Merge
Bybit strives to create a space where savvy traders, thought leaders, and other crypto enthusiasts can share and enrich each other. With offerings for users of all proficiencies, Bybit learn, the intuitive trading platform, offers the best, first-hand information on what investors should take note of the market conditions.
Since the crypto space is constantly evolving, Bybit will continue to monitor The Merge and its market consequences. The platform will be established at a future date and offer updates on whether it will support product lines of potential ETH-forked coins. Let’s take a look at the common misconceptions about The Merge and the three trading strategies from Bybit that investors can leverage to take advantage of.
Common Misconceptions on the Merge
1. Ethereum getting less decentralized after the Merge
Not necessarily correct. Lido and centralized players’ dominance in ETH staking will create centralized risk. Censor Validators can create trouble, while miners are less likely to get attacked as the attacking costs are high.
2. Ethereum gets faster and cheaper after the Merge and dwarfs other ‘Ethereum Killers’
No. Nothing changes right after the Merge in terms of its performance. The Merge’s critical change is shifting from energy-intensive PoW to energy-efficient PoS. However, enhancing throughput is a part of ETH 2.0 where the Merge only marks 55% completion of ETH 2.0. Ethereum Killers are not impacted in the short term, but once ETH 2.0 boosts ETH’s throughput to 100k, Ethereum killers will probably feel the heat.
3. Huge selling pressure from unleashing of staked ETH after The Merge
False. Only after the Shanghai hard fork, expected to take place after The Merge, can staked ETH start to exit gradually.
4. The recent ETH rally shows full faith from investors, and retail investors shall invest more into ETH
That is not necessarily true. Some analysts believe that The Merge has not been fully priced in from a long-term point of view. Spot volume does not add up, and this rally is derivative-driven. Therefore, the “buy the rumor, sell the news” plot may come to play if The Merge happens in September.