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Ethereum POS Sets A Date – September 6th

Crypto markets remain flat as the sector waits for US Fed announcement. Ethereum Merge likely happening on September 6th.

  • Prices across markets have been primarily flat with a slight upward skew for most of this week. The Bitcoin price is up ~1.45% since Monday, while Ethereum (ETH) is up ~4.79%.

  • Digital assets rose on Tuesday after new home sales in the United States fell by 12.6% between June and July 2022. Sales are down 29.6% from a year ago according to a joint report from the US Department of Housing and Urban Development and the US Census Bureau.

  • It is being reported that rising home costs and mortgage rates are driving home sales down. Traders appear to now believe the Fed is more likely to flip dovish, and lower interest rates in the future, given this weak economic data.

  • The weak home sales data is being read as a sign that recent interest rate hikes have had their desired effect of slowing down the economy. A key factor in weak home sales, however, is high costs and inflation tied to construction and land. Lower interest rates will not solve this issue.

  • Markets began the week tamely. Traders are anticipating Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic symposium on Friday. It will likely offer hints into short term US monetary policy.

  • Sentiment surrounding Mr Powell’s upcoming speech has been mixed-to-bearish. Last week’s July FOMC meeting minutes revealed that the Fed was gearing up to implement higher interest rates and tighter monetary policy in the second half of 2022, however, the recent weak economic data may change this view.

    Altcoin Watch

  • Recent days have been bearish for much of the altcoin market,with only a few isolated gainers amongst a sea of red. Cosmos (ATOM) and Eos (EOS) stand out amongst large caps and are up ~10.7% and ~11.6% respectively this week.

  • In June, contributors to Cosmos announced the launch of Interchain Security in August/September. The new model will allow projects built on Cosmos to gain higher levels of security by tapping into the wider Cosmos Hub validator set.

  • The proposal describes a Contract Consumer Chain use case in which developers can get to market quickly by deploying their smart contract application as a Cosmos Hub secured blockchain.

  • Cosmos has begun the year trading at around ~US$32.50 but dropped to as low as US$6.10 in June. The price of the chain’s asset dropped in value over 100 consecutive days. With the price of ATOM now trading at US$13.25, this reversal is a welcome relief for long term holders.

**What we’re looking at: Ethereum’s merge has a new official launch date: September 6th **

The Ethereum foundation, on Wednesday, revealed the official parameters of the upcoming Merge upgrade which will transition the world’s largest platform blockchain transition from a Proof-of-work (PoW) to a Proof-of-stake (PoS) security model.

The “merge” is the official name for the update that will see the current Ethereum mainnet become a shard of the Beacon chain, and begin implementing Proof-of-stake. Currently, the Proof-of-stake Beacon chain runs in parallel to the existing Proof-of-work Ethereum mainnet and following the merge the two will combine.

The process of the Merge will begin with the Bellatrix upgrade on the Beacon Chain on September 6th. Following Bellatrix, when the Terminal Total Difficulty (TTD) value is 58,750,000,000,000,000,000,000 the full merge will be triggered. This TTD is expected to be reached somewhere between September 10th and 20th. Many Ethereum developers expect a trigger date around the 15th-16th of September.

Ethereum transitioning to Proof-of-Stake is set to make the network cheaper, faster, and more environmentally friendly. It will also boost the utility of Ether tokens. Post-merge they will need to be committed, or staked, to the network to indicate commitment. The merge will also slash the emission rate of Ether. Network wide validator rewards post-merge will be much less than current network wide block rewards for Ethereum miners. With less ETH being created daily, many expect the supply shock to push the price of the digital asset upwards.The Ethereum community is buzzing about the implications of the merge.


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