3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

After many years of waiting, Ethereum finally has the ability to be a fully-fledged proofof-stake (PoS), blockchain. Other than Ethereum’s native token Ether, the valuations of many other tokens have benefited greatly and could continue outperforming ETH after Merge.

Ethereum moves closer to the Merge

On Aug. 11, the leading platform for smart contracts completed its last of three public testnets, dubbed “Goerli,” which was completed. There should not be any delays in Ethereum’s Merge, which is expected to go live in September.

After the Goerli update, Ether prices rose 5% to $1,950. This is its highest level in more than two months. Several crypto assets that could be benefited from a successful Merge are making upside moves and even outperforming ETH over the past month.

Daily price chart for ETH/USD Source: TradingView

These tokens will continue to outperform the ETH price through September. Let’s have a closer look.

Lido DAO (LDO)

The Merge will replace Ethereum’s army of miners and validators with validators. They will need to finance 32 ETH as an economically stake.

This major staking requirement has created opportunities for middlemen. These platforms collect Ether from underfunded stakers, and then put the proceeds together in order to become validator of the Ethereum blockchain. Lido DAO is just one of them.

Related: Would it be foolish to predict a huge Ethereum price rise pre- and/or post-Merge.

Lido DAO is the most popular staking service for value locked into Merge’s smart contract. It has poured 4.15million ETH into the so called ETH 2.0 contract, leading Coinbase which has staked approximately. 1.55 million Ethereum on behalf of its clients.

Providers stake ETH 2.0 in total. Source: Glassnode

A successful Merge could increase demand for Lido DAO service.

It could also be a positive sign for LDO, the official governance token of the platform, which has seen its value soar by more than 200% in the past seven months since September, when Ethereum announced that it would become a PoS Chain.

Chart of the LDO/USD daily prices. Source: TradingView

LDO could therefore be one of the main crypto assets that would benefit most from Ethereum’s transition to POS.

Ethereum (ETC).

Another asset that has caught the bulls’ eye in recent weeks is Ethereum Classic (ETC). This is due to the potential to offer a safe haven for miners who are leaving the Ethereum network.

Ethereum Classic is the split-chain from a 2016 contentious hard fork, and it has almost all of the technical characteristics of the PoW Ethereum network. This makes it a safe haven for ETH miners.

ETC, like LDO has rallied by more than 200% since July 14th’s announcement of Ethereum’s Merge. It is therefore likely to continue its uptrend after and ahead of the Merge.

Daily price chart for ETC/USD Source: TradingView

Optimism (OP)

Optimism, an Ethereum rollup service, is called. It aggregates large amounts of transaction data off-chain and then releases the results to the Ethereum mainnet once a consensus has been reached.

Ethereum’s Rollup-Centric Roadmap could be beneficial to the layer-2 solution. Interestingly, OP (Optimism’s governance token) has risen nearly 250% in the time since the Merge announcement.

Daily price chart for OP/USD Source: TradingView

The prospect that Ethereum will deploy Optimism after the Merge could be a bullish catalyst to OP prices.

com. You should do your research before making any investment or trading decision.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

Close Bitnami banner
Bitnami