We’re 1 Month Away From the Biggest Crypto Catalyst in a Long Time

Here’s why the upcoming Ethereum (CRYPTO:ETH) merge is a bigger catalyst than many investors may think, despite the headlines of late.

The Ethereum (CRYPTO: ETH) merge to Proof-of-Stake (PoS) from Proof-of-Work (PoW) is just around the corner. According to experts and those close to this merge, it’s approximately 30 days away. Indeed, as far as cryptocurrency catalysts go, this is the biggest one in a long time.

Recently, this leading smart contract platform successfully executed the Goerli testnet merge. Goerli is the last of Ethereum’s three public testnets to be merged. This successful execution indicates that there should be no delays in the merge.

ETH, the native token of Ethereum’s blockchain, has significantly benefitted, as Ethereum finally looks prepared to transform into a full-fledged PoS blockchain. Besides ETH and many other tokens, it seems that the entire crypto space is benefitting immensely because of the merge. And this will likely continue in the future as well.

Let’s take a closer look.

Ethereum merge a massive catalyst for the overall sector

Following the Goerli update, Ethereum’s price jumped 5% to roughly $1,950 — that’s the highest level touched in over two months. While this token has since lost some steam, trading just below $1,700 at the time of writing, it’s important to recognize how big of a move this was off of lows of less than $900 per token in June.

Indeed, a successful merge will benefit several other cryptocurrency assets. And some of the coins are even undergoing upside moves and have been outperforming Ethereum in the last month.

For example, demand for Lido DAO (CRYPTO: LDO) liquid staking services will likely get a boost because of a successful merge. Also, it can prove to be bullish for the official governance token of this platform — LDO. Already, the value of LDO soared by over 200% since July 14, when Ethereum first declared the likelihood of becoming a PoS chain in September.

Another asset grabbing the bulls’ attention lately is Ethereum Classic (CRYPTO: ETC). That is primarily because of its potential to offer a haven for miners who exit the ETH network.

Other tokens have surged as well due to strong ties to the Ethereum network. As Ethereum becomes more efficient, the projects that are based on the Ethereum blockchain should also blossom.

Bottom line

Even though technical alterations to the schedule are possible, the Ethereum merge is expected to go live around mid-September. When that finally happens, the wait of crypto enthusiasts will finally be over after many years. With less energy intensity and greater efficiency, there’s a reason why many investors are bullish on this massive upgrade.

Indeed, there are plenty of positives to look at. That’s the way the market is generally taking this ongoing upgrade right now.

Fool contributor Chris MacDonald has positions in Ethereum. The Motley Fool recommends Ethereum and Lido DAO.

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