Crypto market cap climbs 15% in a week following Ethereum Merge date revelation

The week was volatile but positive for cryptocurrency traders. They ignored warnings from crypto winter veterans and jumped in at the first sign that prices were rising.

The Crypto Fear & Greed Index is a good example of the sentiment reversal. It has climbed to the fear zone following a record-breaking time in extreme fear territory because of collapsing price in May and June.

Crypto Fear & Greed Index. Source: Alternative

The rally was sparked by extreme fear. A closer inspection of the timeline reveals that the date of the Ethereum Merge announcement, which occurred on July 15, is the reason.

TradingView and Cointelegraph Markets Pro data show that Ether (ETH), following the Merge Date revelation, has risen 38.5% to $1,190, to $1,650 daily high on July 22, amid an overall green day.

ETH/USDT 1-day chart. Source: TradingView

The total cryptocurrency market capitalization, which includes Ether’s rising price, has increased 15% in the last week to $1.051 trillion.

Ethereum-related projects receive a boost

Another indicator that Ethereum’s transition from proof-of-stake to Ethereum is fueling the rally is the list of top gainers over this past week. This includes several projects associated with the most popular smart contract protocol.

The top 5 most volatile coins in 7 days. Source: CoinMarketCap

The vast Ethereum mining network, which currently protects the network, will be abandoned and will need a new mining chain.

Ethereum Classic (ETC), which is technically the original Ethereum proof of work chain, is one of the best choices in terms of network design.

ETC/USDT 1-day chart. Source: TradingView

The ETC price gained 100% in the last nine days. This suggests that traders are anticipating a miner migration from Ethereum Classic to boost the tokens’ long-term price.

Related: Bitcoin stumbles on Wall Street as Ethereum reaches $1.6K in 6 Weeks

Liquid stakes regains its mojo

Lido DAO, a liquid staking platform that allows depositors stake their Ether for stETH in exchange, is another notable benefit of Ethereum-related developments. It is a one-for-1 representation that can be used to collateralize in decentralized finance.

Cointelegraph Markets Pro and TradingView data show that LDO’s price has risen 80% since the Merge data was released. It is now $1.59, up from $0.885 on July 20, after briefly hitting a peak of $1.92.

LDO/USDT 4-hour chart. TradingView

In addition to the momentum generated by its association with Ethereum Merge, LDO’s price has also benefited greatly from support for other protocols such as Polkadot and Solana (SOL), as well its expansion into layer-2 protocols.

Lido launches stETH at Layer 2 Ethereum is scaling. Lido stakers on Layer 2 Ethereum will soon be able use their stETH assets for DeFi on Layer 2. Read more about it here: https://t.co/QCsQry4V41
— Lido (@LidoFinance) July 18, 2022com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/crypto-market-cap-climbs-15-in-a-week-following-etheuerm-merge-date-revelation

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