The expectation of the Ethereum network’s forthcoming switch to proof-of-stake is the reason for the altcoin’s greater price resiliency. The network successfully completed one of the last tests prior to The Merge; which at the time caused Ethereum to increase by roughly 13% over the course of a 24-hour period. At the time of writing, the top alternative currency was trading over $1.3K.
In a parallel operation to Ethereum’s existing proof-of-work mainnet; the Merge will switch the whole network over to a proof-of-stake version of itself. With inflation reaching a 40-year high and the ailing cryptocurrency lender Celsius Network declaring bankruptcy on the same day; market experts are still apprehensive about bitcoin’s rise in a market that is risk averse.
According to recent price actions, the U.S. dollar index (DXY); a gauge of the value of the dollar in relation to a basket of international currencies; is getting close to records not reached since 2002, thus capping the gains of digital assets amid growing risk-off sentiments
Either the devaluation of other currencies causes the increase, like the euro; which recently hit a two-decade low of $1.0002 against the dollar or the growing demand for fixed-income assets denominated in USD as the U.S. Federal Reserve raises interest rates.