After Ethereum’s Sepolia Beacon Chain, what’s next for ETH’s value?
- The Sepolia Beacon Chain went live, marking a new step in the direction toward merging the Ethereum network.
- The Sepolia testnet will begin reaching consensus using PoS upon merging with the Beacon Chain.
- This will provide data on what could happen when Ethereum merges officially.
Ethereum ETH/USD is one of the largest blockchain networks in terms of market capitalization and utility within the spheres of decentralized finance (DeFi) as well as non-fungible tokens (NFTs).
Specifically, due to its smart contract functionality, it has paved the way for a lot of use-cases.
However, its scalability has been limited by its Proof-of-Work (PoW) consensus mechanism, something the merge to Eth 2.0 aims to resolve.
The Sepolia Beacon Chain as a catalyst for growthCopy link to section
The Sepolia testnet Beacon Chain has gone live and has established the foundation for its merge, which will give Ethereum developers technical insights into what they can expect once the full merge occurs.
It was deployed on June 20, 2022, according to a Twitter post by Nethermind, where they announced how Ethereum’s second public testnet chain merge is just around the corner.
Once it ends up merging with its dedicated Beacon Chain, the Sepolia testnet will begin reaching consensus through the utilization of the Proof-of-Stake (PoS) consensus model rather than Proof-of-Work (PoW).
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This will ultimately lead to a lot of data on what might happen when the Ethereum mainnet performs this merge.
The transition to Proof-of-Stake (PoS) could result in the reduction of energy consumption of Ethereum by 99.9%.
Should you buy Ethereum (ETH)?Copy link to section
On June 21, 2022, Ethereum (ETH) had a value of $1,166.62. So, what could you expect if you buy Ethereum now?
For us to get a better perspective as to what kind of value point this is for the ETH cryptocurrency, we will be going over its all-time high point of value, alongside its performance throughout the previous month.
The all-time high value of Ethereum (ETH), on November 10, 2021, the cryptocurrency reached a value of $4,878.26.
When we go over its performance in May, Ethereum (ETH) had its highest point of value on May 4 at $2,951.12.
Its lowest point of value was on May 28 at $1,724.92. Here we can see that the cryptocurrency saw a decrease in value of $1,226.2 or by 41%.
However, after this testnet merge, and due to the anticipation of the official mainnet merge, we can see Ethereum (ETH)’s value increase to $1,300 by the end of July, 2022, making it a solid token to buy.