The promise of the transition Proof of Stake (POS) of the Ethereum is having a positive effect on price performance. For the first time in two weeks, ETH broke through the $3,000 resistance and is currently outperforming the Bitcoin.
Price chart ETH | Source: Tradingview
While the transition to POS has been going on for a long time, recent developments online suggest it is only a few months away.
Investor Optimism on Ethereum Growing
When completed, the energy consumption on Ethereum will reduce 99% and it will also make the network more scalable and transaction cheaper.
“After the Merge, the quantity ETH issuance is expected to drop 90%, which will result in similar fees to reduce the supply to 5% a year,” IntoTheBlock reported.
This has built a new level of optimism among investors. Data from Twitter shows that there were more than 62,000 active tweets about Merge and Ethereum Generally speaking.
Follow data from CryptoSlate, ETH has been one of the top 10 performing coins by capitalization over the past seven days.
ETH price rallied over 15%, surpassing the $3,000 mark for the first time in two weeks. Meanwhile, the price Bitcoin only increased 6.5% in the same time frame.
FundStrat spoke about ETH's recent performance in its Daily Report on cryptocurrency that the asset is “quite useful from a transactional perspective”. This could help push the price higher.
On the other hand, IntoTheBlock recently revealed that over 180,000 ETH has been withdrawn from exchanges cryptocurrency on March 15th.
Largest Outflows in 2022 - over 180k $ETHCARD was withdrawn from centralized exchanges within a single day— IntoTheBlock (@intotheblock) March 18, 2022
-Last time such a magnitude of ETH left exchanges was in Oct 2021, preceding a 15% price increase within ten days
-190k ETH was also into Lido's stETH liquid staking pic.twitter.com/wayu2nvRlR
“Biggest Outflows in 2022 – over 180,000 ETH was withdrawn from centralized exchanges in a single day. The last time ETH was withdrawn from an exchange of such a large scale was in October 2021, before the price increased by 15% within ten days. 190,000 ETH was also deposited into the stETH liquidity staking of Lido".
IntoTheBlock also claims that the staking rewards for Ethereum will be higher than the US consumer price index. The fees earned by miners will now be earned by the staking participants. This will definitely push the reward to around 7% to 12%.