The upcoming Merge update, which will convert Ethereum (ETH) to a Proof-of-Stake (PoS) system, is anticipated to be positive for the cryptocurrency market. According to a section of market analysts, the second-ranked cryptocurrency by market capitalization may not totally profit from the network update. In a CNBC’s Squawk Box interview on August 22, Meltem Demirors specifically suggested that the macro environment, such as high inflation, might discourage new capital from entering Ethereum while also calling it a “buy the rumor, sell the news” event. "With #Bitcoin we've seen a lot of buying on dips," says @Melt_Dem. "While internally there's a lot of enthusiasm within the #crypto community around the merge… I don't think there's a lot of new capital coming in to buy #Etherium on these changed fundamentals." pic.twitter.com/8KBiRHfT1f — Squawk Box (@SquawkCNBC) August 22, 2022 Effect Of The Merge On The Market Overall, the Merge news aided the July cryptocurrency market’s short-term market rise. If successful, the September 15 event will make Ethereum a deflationary asset and potentially drive its price up. The expert, however, questioned Merge’s potential to affect the market as a whole because it is seen as an isolated incident. Shift From Proof-of-Work System After the Merge, Ethereum will stop using the Proof-of-Work (PoW) system, which has drawn criticism for using too much energy. New rules restricting the PoW have been ...
