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The price of Ethereum ETH/USD could move independently of other cryptocurrencies after the Merge, according to blockchain analytics firm Chainalysis.
What Happened: In a recent report examining the on-chain indicators to watch as ETH transitions to Proof-of-Stake, Chainalysis said that ETH’s price could decouple from Bitcoin BTC/USD and other cryptocurrencies.
“Ether’s price could decouple from other cryptocurrencies following The Merge, as its staking rewards will make it similar to an instrument like a bond or commodity with a carry premium,” stated the firm.
The predictions of ETH’s staking rewards hitting 10%-15% annually and the potential for ETH’s price to rise could make staking an “enticing bond alternative” for institutional investors, wrote Chainalysis.
“For comparison, yields for one-year U.S. Treasury bonds sit at 3.5% as of September 2022, though that number has been rising over the past year,” stated analysts in the report.
See Also: HOW TO STAKE ETHEREUM
Earlier this week, the ETH/BTC ratio hit a 2022 high of 0.084 amid trader anticipation around the upcoming Merge. Crypto intelligence firm Arcane Research noted that Bitcoin dominance also reached an all-time low over the last few weeks.
The highly anticipated Merge is scheduled to go live between Sept. 13 and Sept. 15. Ethereum creator Vitalik Buterin urged network participants to upgrade their clients as the date approaches.
Price Action: At press time, ETH was trading $1,627, up 6.9% in the last 24 hours, while BTC was trading at $19,313, up 2.31% over the same period, as per data from Benzinga Pro.
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Image and article originally from www.benzinga.com. Read the original article here.