In a recent interview, Vitalik Buterin, the CEO of Ethereum, said that the upcoming Merge has not been priced in and will not be until the merger has taken place.
September 19 is probably the date that the Merge will take place. However, Buterin noted that the proof-of-stake switch would not immediately involve the full merger of the beacon chain and the Ethereum mainnet. According to him, this is the reason why you probably won’t see a huge change in the Ethereum price right away.
Ethereum will become deflationary
Buterin says investors will have to wait at least six months before the Merge can trigger significant price action. And even then, the right conditions must be in place for that to happen. One of those conditions is a ‘clean-up fork’ that will take place after the merge. However, once all this has taken place, the future looks very bright for Ethereum.
In fact, experts expect Ether to be deflationary after the merger. Head of research at blockchain analytics firm, IntoTheBlock, Lucas Outumuro, said Ethereum’s supply will decline over time after the merger. The EIP-1559 upgrade ensures that Ether tokens are destroyed, instead of the tokens being given to miners.
Vitalik Buterin also warns that there is a good chance that the Ethereum price will rise just before the merge, and then dump and then rise again. We often see this phenomenon called ‘Buy the rumor, sell the news’ with major upgrades.
The Ethereum price rises by 10 percent
Whether the Merge is already priced in or not, the Ether price is at least performing well today. At the time of writing, the price of 1 ETH token is around $1,728. That’s about 10 percent higher than a day ago.
