The Ethereum/Bitcoin ratio reaches its highest level since 2022 amidst the merger momentum.

TradingView data shows that the ETH:BTC ratio climbed to a 2022 high early Tuesday, surpassing 0.084 for the first time since December 2021. The ETH:BTC ratio jumped about 58% from the approximate 0.053 value in mid-July. The “ratio“refers to the cost of 1 BTC in terms of ETH. With a ratio of 0.084, 1 BTC is worth about 12 ETH.

Ethereum recovers against Bitcoin

With the “merger” just days away, Ethereum is gaining strength against Bitcoin.

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ETH/BTC since the beginning of the year (Source: TradingView)

Ethereum enthusiasts have discussed the ratio at length in the past, in tandem with “the flippening“.-a hypothetical event that would see Ethereum surpass or “pinball” the market capitalization of Bitcoin. The ETH:BTC ratio exceeded 0.1 in June 2017 and January 2018, but for the reversal to occur, it would need to reach about 0.159 based on the current outstanding supply of both assets (the ratio also changes as the supply of ETH and BTC coins adjusts over time).

Ethereum’s current lead over Bitcoin can be explained by the growing hype around the Merge, the long-awaited Proof-of-Stake update to the number two blockchain. The Merge is scheduled to happen between September 13 and 15, and the first part of the event is happening today. Dubbed Bellatrix, the first stage of the upgrade will see Ethereum update its consensus layer before the merge itself. The second phase, called Paris, will end when the terminal total difficulty threshold reaches 587500000000000000000000000, marking the difficulty required to extract the final block in Proof-of-Work mode. After that, all new Ethereum blocks will be added to the chain by the validators staking the ETH.

The market awaits the merger

After suffering from several years of delays, the merger is widely expected to be the biggest crypto event of 2022. It is expected to bring several major changes to Ethereum, including a 99.99% reduction in power consumption and a 90% reduction in ETH issuance. This is part of the reason ETH has rallied in recent weeks. Such is the interest in the update that many Ethereum-related tokens, including Ethereum Classic’s ETC and Lido’s LDO, have advanced alongside ETH in recent weeks. Ethereum Classic has benefited from miners moving to the network before they become obsolete on Ethereum; its hash rate hit a record high on Monday. A group of proof-of-work advocates also plans to fork Ethereum to create a new network that would maintain a hub for miners. Known as EthereumPOW, the initiative is expected to follow the merger and could potentially lead to an airdrop of tokens on the new chain for ETH holders. Several major exchanges, including FTX and Binance, have confirmed plans to support airdrop in addition to the merger.

According to CoinGecko data ETH was trading at $1,664 today, up about 6.2% over the past 24 hours.

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