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ether the developer final rehearsal Due to the all-important upgrade scheduled for next month.
The world’s second-largest cryptocurrency surged to $1,927 on Thursday, its highest level since early June, according to data from CoinMetrics. The token last traded at $1,912, up 5% in the last 24 hours.
On Wednesday, Ethereum performed a final dry run of its “merge.” This is an important event that is expected to make things faster and more energy efficient. One of Ethereum’s test networks called Goerli simulated the same process that the main network does in his September. Testnets allow developers to experiment and make necessary adjustments before updates are launched on the main blockchain.
The merger sees Ether’s underlying blockchain move from a proof-of-work system to a more efficient model called proof-of-stake. Proof-of-work consensus mechanisms rely on cryptominers to validate transactions. Proof-of-stake networks, on the other hand, consume much less energy as validators need to hold a certain amount of tokens to participate. The event, which has been postponed many times, is now scheduled for September 19th.
Once upgraded, transactions on the Ethereum network are expected to be faster and more energy efficient. Environmental impact of cryptocurrenciesThis has led some investors to bet that Ethereum may eventually steal Bitcoin’s thunder. Bitcoin has lost some ground to other tokens in recent years, with its market dominance below his nearly 70% to 40% in early 2020.
For IT specialist Kaj Burchardi, whether Ethereum will eventually overtake Bitcoin as the king of cryptocurrencies is “almost irrelevant.”
Burchardi, Managing Director of BCG Platinion, the IT arm of Boston Consulting, said: group.
“Ethereum is not a use case, it offers the possibility of implementing really good use cases like NFTs. [nonfungible tokens] Banking products on the platform. Bitcoin is a use case. ”
Following a successful integration test, Ether led a broad rally among digital assets on Thursday, with the combined value of all cryptocurrencies surpassing $70 billion to reach $1.2 trillion in a single day. Bitcoin Binance’s BNB The token was up 3% at $330.
Still, investors more generally Catastrophic Implosion of $60 Billion Stablecoin Terrasent shockwaves through the crypto market, causing the collapses of investment firms Celsius, Three Arrows Capital and Voyager Digital. losing value.
— CNBC’s MacKenzie Sigalos contributed to this report