3 Cryptocurrencies That Can Grow More Than Ether After Ethereum Updates

It is not the only token of the Ethereum network itself that will benefit from the network’s migration to the Proof of Stake (PoS) algorithm. In the following, we will introduce 3 other digital currencies that may even perform better than the Ethereum token itself in terms of price after the Merge update.

To Report Cointelegraph After years of waiting, Ethereum is finally ready to become a full-fledged proof-of-stake blockchain.

Ethereum is closer than ever to a merge update

Ethereum, the host of leading smart contracts, completed the Goerli network on August 11 (20 August) as the last test network of its 3 public test networks. Therefore, it is not expected that we will see another delay for the Ethereum update and we will probably finally see the launch of the network with the new consensus algorithm on September 19.

After the successful Gurley update, the price of Ethereum jumped 5% to around $1,950, which is the highest price of Ethereum in more than two months. Meanwhile, some other digital currencies that benefit from this update have also started their upward price trend and some of them have even achieved a better price performance than the Ethereum token itself.

At the end of September, will these tokens perform better than the Ethereum token in terms of price? Let’s take a closer look.

Lido Dao (LDO)

Marj’s update replaces the vast majority of Ethereum miners with a number of validators that only need to have 32 Ethereum as an economic reserve. This condition provides a very good opportunity for intermediaries. For example, we can refer to platforms that take Ethereum from shareholders who do not have enough funds and divide the profit from validation among them. Lido Dao is one such project.

In terms of the amount of capital that is locked in Marj’s smart contract as a reserve, Lido Dao is considered the leading staking service. It should be noted that 4.15 million ethereum has been poured into this smart contract called Ethereum 2, and Coinbase exchange is the leader with 1.55 million ethereum reserves of its customers in this contract.

If Marj’s update is successful, the demand to use Lido Dao’s services will also increase

In this way, the price of Lido Dao (LDO), whose value had grown by about 200% between July 14 (July 23) and the news that Ethereum might migrate to the proof-of-stake algorithm, can still continue to grow.

Lido Dao is therefore one of the digital currencies that could benefit the most from Ethereum’s successful transition to the Proof of Stake algorithm.

Ethereum Classic (ETC)

Ethereum Classic is another asset that has attracted the attention of bulls in recent weeks. The reason for this attention is primarily the potential of this currency for miners who leave the Ethereum network.

Since Ethereum Classic was separated from the main chain in a controversial hardfork in 2016, it has almost all the technical features of the current Proof-of-Work (PoW Ethereum) network and is therefore considered a safe haven for Ethereum miners.

Like Lido Dao, which we explained about, the price of Ethereum Classic has also increased by more than 200% since the news of Marj’s update was announced on July 14 (July 23). Therefore, the possibility of continuing its upward trend in the future and after a possible successful update will be high.

Optimism

Optimism is a rollup service for Ethereum. In other words, Optimism’s task is to collect mass off-chain data in specific batches and return the results to the Ethereum main network after confirming the consensus algorithm.

Also read: After the launch of Ethereum 2.0, what will happen to the second layer networks?

Also, Optimism is considered one of the layer 2 networks that will benefit from Ethereum’s Rollup-Centric roadmap after the update of Marj. It is interesting to note that the price of Optimism Network’s governance token has grown by about 50% since the announcement of the release date of the Marj update.

The prospect that Ethereum has given to establish optimism in its network after the Marj update can be considered a catalyst for the upward trend in the price of this digital currency.