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After The Merge update is activated on the main Ethereum network, the price of the second largest cryptocurrency by capitalization in the long term may rise to $5,000. Roman Nekrasov, co-founder of the ENCRY Foundation, stated this in a conversation with Cryplogger.
According to him, in the coming month, the ETH rate may experience serious fluctuations. Nekrasov recommended that holders hod cryptocurrency in the next three months.
“In the future, 3-6 months, I expect the growth of Ethereum. With a favorable set of circumstances, the price of ETH can reach $5,000,” the expert added.
At the time of writing, the second cryptocurrency is trading around $1,480, according to CoinGecko.
The co-founder of the ENCRY Foundation questioned the real value of the upcoming PoW fork of Ethereum (ETHW). He advised to pay attention to the Ethereum Classic coin, behind which “there is a serious development team”.
“Miners started redirecting video cards to ETC mining since mid-July, when The Merge activation dates became known. In anticipation of the update, the Ethereum Classic price has grown significantly, and I believe it will grow further,” he said.
Despite the fact that the reduction of transaction fees to the level of $0.05 is defined by Vitalik Buterin as a target, one should not expect them to fall sharply, Roman Nekrasov believes.
He expects that the introduction of sharding, which will increase the performance of the Ethereum network to 100,000 transactions per second, is more likely to reduce the cost of transactions.
“The Merge update is still aimed at solving the problem of increasing the energy efficiency of the blockchain, and not scalability, although it prepares the ground for this,” the expert explained.
The main challenge for developers after the network transitions to the Proof-of-Stake (PoS) consensus algorithm will be the resilience of Ethereum to 51% attacks and censorship.
“Some people pay attention to the fact that 30% of the staked ethers are at the disposal of the popular Lido service. Others fear that the transition to PoS will lead to transactions being censored at the request of the authorities, since the miners were more anonymous than the stakers. But both are still only fears, ”added Nekrasov.
Recall that on September 15 at 9:42 a.m. Ethereum developers activated a large-scale update of The Merge in the main network. Blockchain was successfully transferred to PoS.
Read more about the upgrade in a special Cryplogger article.
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