The price of ether ETH/USD could move independently of other cryptocurrencies after the merger, according to blockchain analysis firm Chainalysis.
What happened: In a recent report Chainalysis examined on-chain indicators to watch ETH move to proof-of-stake and said the price could decouple from ETH Bitcoin BTC/USD and other cryptocurrencies.
“Ether’s price could decouple from other cryptocurrencies after The Merge as its staking rewards will make it resemble an instrument like a bond or a commodity with a carry premium,” the company explained.
Predictions that ETH staking rewards would hit 10% to 15% annually and the potential for ETH to rise in price could make staking an “enticing alternative to bonds” for institutional investors, Chainalysis wrote.
“For comparison, US 1-year Treasury yields are 3.5% in September 2022, although that number has increased over the past year,” analysts said in the report.
See also: HOW TO STAKE ETHEREUM
Earlier this week, the ETH/BTC ratio reached a level 2022 high of 0.084 amid dealers’ anticipation of the upcoming merger. Crypto intelligence firm Arcane Research noted that Bitcoin’s dominance has also hit an all-time low in recent weeks.
The highly anticipated reunion is set to go live between September 13th and 15th. The creator of Ethereum Vitalik Buterin asked the network participants to update their clients as the date approaches.
Price promotion: At press time, ETH was trading at $1,627, up 6.9% over the past 24 hours, while BTC was trading at $19,313, up 2.31% over the same period, according to data from Gasoline Pro.
