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Ethereum and the Merge. Moving to PoS. Everything we know about The Merge by this hour

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The network of the second most capitalized cryptocurrency Ethereum (ETH) has migrated from the extremely energy-consuming Proof-of-Work (PoW) algorithm to the more environmentally friendly Proof-of-Stake (PoS). Community members could watch the migration of ETH with the project’s development team during the online broadcast.

Ethereum, the Merge release date is September 15, 2022. Today, the Ethereum network moved to PoS. The event took place on block 15537394, amid a rise in the network’s terminal complexity to 587500000000000000000000000, as part of The Merge update. The migration to a different algorithm was the most significant event in Ethereum’s history.

Project co-founder Vitalik Buterin congratulated community members on the successful migration of ETH to PoS.

The reward for the first block mined in the PoS network, according to developers, was 45 ETH. Ethereum responded to the migration with a slight increase.

Ethereum and the Merge: How migration to PoS will change Ethereum

Classic PoW mining will replace another way of mining coins – stacking. The Ethereum core network will now be protected by validators. The update will also reduce the power consumption of the network, which will have a positive impact on the environment.

“The Merge will reduce global electricity consumption by 0.2%,” Ethereum researcher Justin Drake believes.

Also, the move to the new algorithm should help the ETH ecosystem cope with the scalability problems that the network has faced amid the growth of the DeFi and NFT markets. This will have a positive impact on Ethereum Merge and price. 

A couple of words about Ethereum’s PoW fork

The migration of ETH to the new algorithm has not made everyone happy. Miners of the traditional version of Ethereum faced the prospect of losing income. This prompted them to create a fork to stay on the old Proof-of-Work mechanism. 

Ethereum’s PoW fork token, ETHPoW (ETHW), was unveiled in August 2022. On the morning of September 15, information appeared on the network that the coin’s mining decided to support the teams of several large pools at once.

Amid the launch of the PoW fork, Ethereum holders will be able to get new tokens in the proportion of 1:1 to their ETH balance. The initiative has been supported by several crypto platforms, including the Binance exchange.

The launch of the main ETHW network should take place soon. Experts doubt the viability of the fork, as almost all leading decentralized ETH applications (dApps) are migrating to PoS.

ETHW won’t be the only PoW-Ethereum. After the migration of ETH to PoS, the first version of the cryptocurrency, Ethereum Classic (ETC), will remain on the market. The project’s network has been running on PoW since its early days.

Ethereum prediction after the Merge: what next?

Next year the developers planned another update – Shanghai. It will allow you to start withdrawing ETH for everyone who previously placed their coins in stacking.

Earlier, we reported that Huobi excluded Dash, Monero, and zcash from the listing.

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Cardano officially announced the imminent launch of Cardano stablecoin Djed

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On January 25, the COTI network announced that Cardano-developed stablecoin Djed will launch next week. The announcement did not include a specific Djed stablecoin release date, but generally confirmed previous Cardano notices that the stablecoin would be introduced to the cryptocurrency community by the end of January 2023:

According to developers, the only technical reason for the launch delay is the chain index synchronization process. They specified that this process could take 14 days, with it having been started “a week ago and is expected to be completed next week.” Accordingly, Cardano stands a good chance of meeting its deadline and launching Djed by the end of January.

The announcement also says that DJED and its balancing coin SHEN will be listed on the Bitrue exchange. This Singapore-based exchange has already officially confirmed its readiness to list the new stablecoin:

Also, Minswap, the leading decentralized exchange (DEX) in the Cardano ecosystem, has already announced the creation of two pools (ADA/DJED and ADA/SHEN) for the new tokens starting next week.

As the developers promise, the amount of overcollateralization of stablecoin will be 400% – 800%. Thus, “it will have 4-8 times more base value behind it compared to the total amount of Djed coins issued.”

Will it help the ADA exchange rate

Amid news of the imminent launch of a new stablecoin in the ecosystem, the Cardano (ADA) exchange rate has been showing strong gains lately. However, the token came under pressure this morning during the Asian trading session.

ADA marked an 11-week high of $0.384 on January 22, but is pulling back today along with the entire crypto market. At the time of writing, its intraday drawdown was about 5.7% and it was trading around $0.36. However, inside the week, the coin continues to stay in the green zone (about 3.5% at the time of writing).

The current pullback could be a convenient opportunity for Cardano and ADA enthusiasts to enter the market at profitable levels ahead of Djed’s imminent release.

We previously reported that the Wall Street Giants were among the lenders to FTX.

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Former Chancellor of the Exchequer to head a UK cryptocurrency company. Is cryptocurrency regulated in the UK?

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Former UK Chancellor of the Exchequer Philip Hammond has become head at copper.co, a provider of institutional solutions for storing and trading digital assets. Is cryptocurrency regulated in the UK?

Hammond has served as a senior advisor to Copper since October 2021. During that time, he provided strategic advice to the company’s team as the firm grew significantly and expanded its operations and services worldwide. Since he joined the company, its staff has grown from 50 to more than 300 people and revenues have doubled.

“I was honored to benefit from Lord Hammond’s strategic experience based on his successful career in politics and business. I am very pleased that he has agreed to become chairman of Copper,” said Copper CEO Dmitry Tokarev.

He said Hammond, in particular, will focus on combining traditional finance with distributed ledger technology.

“I’ve really enjoyed working with Copper, a company that pioneered digital asset investment technology and is increasingly becoming a leading option for global financial institutions to trade and protect their digital assets,” Hammond said.

Is cryptocurrency legal in the UK?

According to Hammond, the UK now needs to accelerate the creation of a better regulatory regime for digital assets, as Switzerland and the EU are already well ahead of the United Kingdom in the development of the cryptosphere. He believes that the U.K. financial services sector should use distributed ledger technology as a key part of its strategy to remain a major global financial center after Brexit. Should we expect bitcoin and other cryptocurrencies to be legalized in the UK?

The U.K. set its sights on the cryptosphere a few years ago. Since then, the UK has introduced a lot of initiatives aimed at regulating and developing crypto. Among the latest key changes is the extension of tax breaks for digital assets. British authorities intend to extend investment managers’ exemption rights for crypto-assets, making it easier to include them in portfolios of foreign funds managed in the UK without the risk of taxation. Also, the UK Central Bank has begun preparations for the issuance of the state digital currency (CBDC).

Earlier, we reported that the SEC began inspecting the holdings of cryptocurrency by investment advisors.

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Realized bitcoin yields are back in the green zone: should we expect a move towards $24,000 amid high bitcoin yields?

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The new year in the crypto market started with an impressive rally and bitcoin’s realized yield returned to the green zone. Let’s examine whether BTC will continue to move towards the next resistance level on the back of higher bitcoin yields, or whether it was a bull trap.

Bitcoin’s key metrics have strengthened considerably, with a prominent PlanB analyst reporting that we are seeing BTC yields turning positive again recently. This metric measures the actual profit made during the holding period of an asset.

According to Woo Charts, bitcoin’s selling price is currently at $19,785. BTC surpassed that level on January 13 and has been trading well above it ever since.

The next frontier in the asset’s path is the 200-week moving average at $24,685. This metric is traditionally an indicator of the bottom of the bear market, and fixing above it will confirm the uptrend.

Market sentiment has shifted to positive

Moreover, market sentiment has also improved, with the BTC Fear and Greed Index entering the “greedy” zone. This is the highest since the end of March 2022.

Capriole Fund founder Charles Edwards commented on Twitter:

“Many people thought the collapse of FTX would end the crypto market. But bitcoin always comes back stronger than ever after the purge of bad players. Nothing will stop the inexorable pace of our industry.”

What to expect from the bitcoin price

At the time of publication, BTC was trading at $22,930. The asset has been developing in this area for almost a week now.

Bitcoin’s next target is $24,400, a price we last saw in August 2022. If resistance is broken through, there won’t be many obstacles left on the way to $30,000.

We previously reported that Polygon beat Ethereum and MATIC pushed Solana out of the top 10 cryptocurrencies.

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