Home Markets Ethereum (ETH) Market Cap Skyrockets $20 Billion Ahead of Merger

Ethereum (ETH) Market Cap Skyrockets $20 Billion Ahead of Merger

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Ethereum (ETH) Market Cap Skyrockets $20 Billion Ahead of Merger

Ethereum continues to recover from bearish market trends due to renewed interest in digital assets which has resulted in a significant increase in market value.

Ethereum remains the second most popular digital asset and second by market capitalization in August.

ETH had a market capitalization of around $229.92 billion on Thursday, based on data from TradingView.

This is a 10% increase from Tuesday’s closing market capitalization. On that day, ETH saw a trading volume of 16.37 billion dollars, which corresponded to a market capitalization of around 207.89 billion dollars.

Source: ETH Market Cap Chart by TradingView

Why the rising market capitalization?

The success of the final testnet, called Goerli, which took place on August 10 and simulated a process almost identical to what the mainnet (mainnet) will experience in September during fusion, has been credited with soaring the market value of Ethereum.

With that out of the way, the crypto community is waiting for Ethereum to go from a proof of work (PoW) to one proof of stake network (point of sale).

Ethereum price reaction

ETH opened on Tuesday with a trading price of $1,776.07 and hit an intraday high of $1,908.20 on Thursday.

At the time of writing, ETH had seen an 81% increase in trading volume over the past 24 hours and was trading hands for $1,889.28.

Overall, this equates to a 6% increase in the price of ETH in less than 48 hours.

Source: ETH/USD Chart by TradingView

The highly anticipated merger could also lead to increased institutional adoption, it is claimed. Bloomberg Intelligence said in a report that the transition could accelerate Ethereum’s rise to institutional-level investment.

However, a DeFi researcher don’t expect that Ethereum fees will come after the merger. He argues that fees are based on demand for block space and that moving to proof-of-stake will not impact this.

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