Vitalik Buterin – “Merge Isn’t Priced In Yet”, What It Means For Ethereum (ETH) Price
Ethereum co-founder Vitalik Buterin in an interview said “the merge is not priced in” until it happens, not just for market terms but also for psychological and narrative terms. The highly-awaited Merge is most likely to occur on September 19 and will not immediately be a complete PoS transition with the merge of Ethereum Mainnet and Beacon Chain.
In market terms, the prices are not likely to be rising soon before or after the Merge. Expect a 6-8 months waiting period before the actual price action “under the right set of conditions.” The Ethereum will be deflationary after the Merge.
Vitalik Buterin Says the Merge Isn’t Priced In Until It Happens
Vitalik Buterin, Ethereum co-founder and developer, doesn’t believe the Merge is priced in until it happens, reported Bankless on July 28.
“I basically expect that the merge is going to be kind of not priced in, by which I mean like not even just like market terms but even just kind of like psychological and narrative terms.”
He means the transition to Proof of Stake (PoS) will not be complete by just the Merge of Ethereum Mainnet and the Beacon Chain. Ideally, the Surge, Verge, Purge, and Splurge phrases are crucial for the Merge.
In market terms, people anticipating a price rally as a result of the upcoming Merge in mid-September will have to wait 6-8 months for the price rally to actually kicks in.
A post-merge cleanup fork usually runs for about 6 to 8 months. Ethereum developers will most likely open withdrawals after a post-cleanup update. New Ether issue will continue only after the cleanup phase.
The Ethereum (ETH) will become deflationary crypto after the Merge, with the supply reducing as a result of the EIP-1559 proposing to burn ETH instead of giving it to miners.
The Ethereum (ETH) prices could rise before the Merge, dump on Merge, and again as Vitalik Buterin said at the Ethereum Community Conference, the value of Ethereum will rise under the right market conditions.
Staked Ethereum and Ethereum Classic after the Merge
Lido Staked ETH (stETH) and Ethereum Classic (ETC) prices are also rising higher with Ethereum (ETH) prices in the last 24 hours. ETH, stETH, and ETC prices jumped 12%, 11%, and 22%, respectively.
Staked ETH will most likely also be locked until Ethereum developers complete the post-cleanup update. However, some exchanges such as Coinbase and Kraken claim to allow for trading of staked ETH before the 6-month period.
Meanwhile, Ethereum Classic (ETH) price is rising as miners can switch to it post-Merge. The PoS transition will make ETH miners obsolete. Also, AntPool promises support for the Classic blockchain.