3 cryptocurrencies outperforming ETH price thanks to Ethereum merger

3 cryptocurrencies outperforming ETH price thanks to Ethereum merger – Mail Bonus

ADVERTISEMENT

After years of waiting, Ethereum is finally ready to become a fully-fledged proof-of-stake (PoS) blockchain. Aside from Ethereum’s native token Ether (ETH), valuations of several other tokens have not only benefited greatly, but may also continue to outperform ETH after the merger.

Ethereum steps closer to the merger

The leading smart contract platform completed the last of its three public testnets called “Goerli,” on August 11th. Therefore, there should be no delays on the Ethereum “Merge”, which is expected to be live on September 19.

Ether prices rose 5% to around $1,950, the highest price in more than two months, after the Goerli update. Meanwhile, certain crypto assets that could benefit from a successful merger are undergoing a rally and have even outperformed ETH over the past month.

ETH/USD daily price chart. Source: TradingView

Will these tokens continue to outperform ETH prices through September? Let’s take a closer look.

Lido DAO (LDO)

The merger will replace Ethereum’s miner army with validators, who will have to front 32 ETH as an economic stake.

This high mortgage demand has opened up opportunities for intermediaries, i.e. platforms that collect Ether from underfunded entities and pool the proceeds to become a validator on the Ethereum blockchain. Lido DAO is one of them.

Related: Is It Foolish To Expect A Big Ethereum Price Increase Before And After The Merger?

Lido DAO is the leading escrow service in terms of value locked in Merge’s public smart contract. In particular, it has poured 4.15 million ETH into the so-called ETH 2.0 contract, leading Coinbase, which has staked approx. 1.55 million ETH on behalf of their clients.

ETH 2.0 total value pledged by provider. Source: Glassnode

A successful merger could increase demand for Lido DAO services.

Conversely, it could prove bullish for the platform’s official control token, LDO, whose value had already risen by more than 200% since July 14, when Ethereum first announced the possibility of becoming a PoS chain in September.

ADVERTISEMENT
LDO/USD daily price chart. Source: TradingView

Therefore, LDO is one of the main cryptoassets that could benefit the most from Ethereum’s successful transition to POS.

Ethereum Classic (ETC)

Ethereum Classic (ETC) is another asset that has caught the attention of the bulls in recent weeks. It is primarily due to the possibility of providing a haven for miners exiting the Ethereum network.

Since Ethereum Classic is a split chain from a controversial hard fork in 2016, it exhibits almost all the technical features of the current, PoW Ethereum network, making it a natural haven for ETH miners.

Like LDO, ETC has also gained more than 200% since Ethereum’s merger was announced on July 14th. Therefore, the chances of continuing its upswing are high ahead and after the merger.

ETC/USD daily price chart. Source: TradingView

Optimism (OP)

Optimism is an Ethereum review service. In other words, it collects bulk transaction data off-chain in batches and releases results back to the Ethereum mainnet when consensus is reached.

The so-called layer-2 solution could benefit from Ethereum’s “Rollup-Centric Roadmap” after the merger. Interestingly, OP, Optimism’s ticker symbol, is up nearly 250% since the announcement of the Merger release date.

OP/USD daily price chart. Source: TradingView

The prospect of Ethereum applying optimism to its network post-merger could serve as a bullish catalyst for OP prices.

The views and opinions expressed here are solely those of the authors and do not necessarily reflect the views of Cointelegraph.com. Every investment and business involves risk, you should do your own research when making a decision.

ADVERTISEMENT