The successful deployment of proof of stake (PoS) merging on one of its oldest testnets saw Ethereum (ETH) prices recovering on Thursday.
ETH has risen slightly to reclaim the $1800 in the last 24 hours. This comes after the token was severely rejected from $2000 a few days ago.
The token’s mild recovery appears to be fueled by excitement over the successful deployment of a proof-of-stake (PoS) mechanism on Ropsten, one of its oldest testnets.
Several Ethereum developers and validators confirmed the deployment. They’re now keeping an eye on the chain to make sure the merger goes down without a hitch.
What happens now that Ropsten has shifted to a pos system?
While the testnet merge is still in its early stages, a successful deployment may indicate an earlier mainnet merge. While there are still two more testnets to merge, according to Vitalik Buterin. He stated that the switch to PoS may happen as soon as August.
This timeline, however, depends on all testnets running successfully.
Trader interest in the merger is going strong, according to recent data, with a total of $25 billion staked on Ethereum 2.0 as of last week.
The switch to PoS is largely predicted to boost Ethereum prices because it would make the token more accessible. The move could potentially invite back institutional interest in the token. Which is in dire straits due to weak crypto market conditions.
There are several skepticisms about the merger
But while the merger is highly anticipated, numerous traders have expressed doubts about whether it would be a significant upgrade.
After the merger, Ethereum’s price dynamics could change dramatically, putting more pressure on buyers to keep prices stable. This is also driven by the lack of mining incentives in PoS. Which account for the majority of Ethereum’s interest at the moment.
Concerns have also been raised regarding the merger’s stability, following the Beacon chain’s massive problems last month. Critics argued that PoS is less secure than proof-of-work models.
