BigONE’s Insight: Making the Most of the Ethereum Merge
The merge has finally arrived, as Ethereum recently completed the Bellatrix upgrade, an update to the Ethereum Virtual Machine, which is the part of the network that hosts decentralized apps. The update would add more security, improve performance, and increase scalability. This confirms Ethereum’s transition from POW to POS in the coming days. There has been a lot of discussion about what will happen to Ethereum after the merger, particularly in terms of price action and how the DeFi community will react to these new developments. The price of Ethereum has risen from its recent lows of $890 to $1600, owing primarily to the anticipation of the merger.
A new faction of POW miners is planning to fork the Ethereum blockchain and release their ETHPOW token. The fork, known colloquially as ETHPoW, will share the same transaction history as the leading Ethereum network but will begin creating its blocks after the Merge update is implemented. Because the PoW fork begins from the pre-Merge state of the Ethereum network, all token balances and smart contracts will be carried over. This means that everyone with ETH on-chain will end up with an equal amount of ETHW on the forked ETHPoW chain. ETHW will be unique to the PoW fork and a completely different asset than the original ETH on Ethereum.
BigONE will look at the ETHPOW token, other plays surrounding the merge, and how our users can capitalise on these developments to be profitable during the merge in this article.
BigONE’s Outlook On Different Proposed Strategies Of The Merge
Forked Tokens: Forked tokens have been making the rounds as a potential play for Ethereum miners unwilling to transition to proof-of-stake. BigONE believes that most of these forks will airdrop their tokens to Ethereum holders immediately following the merge. It is important to note that most of these tokens would be illiquid and serve no purpose over time. One strategy is to hold Ethereum on exchanges that support the forked tokens and sell once there is sufficient liquidity. According to Bobby Ong, the founder of CoinGecko, “Almost all fork tokens are now dead because they were created solely to keep miners temporarily occupied with mining and have no incentive to grow their community and usage.”
Futures: Futures Trading is another way to maximize profit during this merger. Despite the bear market, the merger has sparked much interest in Ethereum. With the current price around $1600, there is an opportunity for more upside leading up to the merge, as well as profits for futures traders who can predict the price movement of Ethereum. Users can take advantage of the merger by opening a futures trading account on BigONE.
Grid Trading: Grid trading, a type of futures trading, is offered by BigONE. Grid trading is simple to automate and requires little to no market knowledge. When you set up your grid trading strategy, it will be able to handle repetitive tasks without requiring you to monitor real-time market movements constantly. Even in trending markets, prices tend to consolidate in shorter time frames. Another opportunity to profit from price fluctuations during the merger. However, determining a reasonable price range in any time frame is critical to ensuring the profitability of your grid trading strategy. On BigONE, you can also copy-trade our experienced traders.
If successful, the merger would be a watershed moment for Ethereum and DeFi, bringing us one step closer to realizing the reality of decentralized finance supplanting traditional finance. Opportunities abound in cryptocurrency, and the merger provides yet another chance to profit. BigONE always advises its users to conduct thorough research before making investment decisions.