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Cryptocurrency Trend Analysis: Baidu Finance; Ethereum Back to $1,900
发布时间：2022-08-25 浏览：129
On August 11, the latest market data showed that the price of Ethereum had exceeded $1,900, with a 24-hour increase of more than 13%. At the highest point since June 6, the total market value of Ethereum also returned to above $220 billion.
The cryptocurrency market has also risen, with the overall market value returning to $1.2 trillion. Among them, the price of Bitcoin broke through $24,500, the highest point in the past two months.
In the past four weeks, the price of ethereum has risen by 60% and bitcoin by 20%, and the cryptocurrency has begun to slowly recover from the bear market.
As cryptocurrencies move towards a more mainstream market, the macro impact cannot be ignored.
On August 11, local time, the U.S. Department of Labor released data showing that the U.S. PPI (Producer Price Index) in July increased by 9.8% year-on-year, the previous value was 11.3%, and the expected 10.4%; the U.S. core PPI in July increased by 7.6% year-on-year, The previous value was 8.2%, and the expectation was 7.6%.
The lower-than-expected inflation data gave the capital market a boost. Some people believe that the concept of the Fed raising interest rates by 50 basis points in September has greatly improved. After the data was released, both U.S. stocks and the cryptocurrency market performed more positively.
Although since 2020, cryptocurrencies and the U.S. stock technology sector have shown an increasingly high correlation, and there are often market conditions that rise and fall at the same time, there are some noteworthy independent quotations happening in cryptocurrencies recently.
Unlike the past with Bitcoin as the core driving force, this time the market's focus is on Ethereum. The data shows that the price rebound of Ethereum in July was 56.69%, while the average rebound of other cryptocurrencies during the same period was about 15%. The market performance of Ethereum far exceeded other cryptocurrencies, including Bitcoin.
Ethereum is currently the world's largest blockchain ecological network, and its token "ETH" is also the world's second largest cryptocurrency. In the cryptocurrency bear market that began in May this year, the price of Ethereum fell from the $3,000 mark to below $1,000. The key level, the lowest touched $880.
It is expected that on September 19 this year (not the final date), the world's largest blockchain network will usher in a major upgrade "The Merge". This upgrade will not only affect the encryption market, but also It contains the concept dispute of the development of blockchain technology.
Specifically, the biggest change brought about by this upgrade of Ethereum is to shift the previous PoW (Proof of Work) to PoS (Proof of Stake). Both PoW and PoS are consensus algorithm mechanisms for recording data on the blockchain network. Bitcoin implements the PoW mechanism, which requires miners to compete for computing power to obtain accounting rights, thus consuming large computing resources. On the other hand, "PoS" uses the number of pledged encrypted assets to obtain blockchain accounting rights, which consumes less computing power, but it is easier to centralize computing resources.
The essence of the consensus algorithm is to find a more suitable solution in the impossible triangle of "performance, security, decentralization" of the blockchain. And Ethereum chose the PoS mechanism for this upgrade, including the issuance method of Ethereum tokens and the number of issuances, which will bring great changes.
Sun Yulin, a senior researcher at Ouke Cloud Chain Research Institute, told Jiemian News that the core of the Ethereum upgrade is the change of the consensus algorithm, which is also an important step in the subsequent upgrade, but it does not solve the problem of high transaction costs that the Ethereum network needs to be cracked at present. . In the blockchain impossible triangle, the performance problems of Ethereum may take some time to improve.
At the same time, once Ethereum switches from PoW mechanism to PoS mechanism, due to the change of consensus algorithm, the mining graphics card formerly known as "money printing machine" will not be able to continue to work in the new Ethereum network, so as to obtain economic rewards. Therefore, due to the inconsistent direction of interests, some Ethereum miners have begun to prepare to fork Ethereum and choose another path.
A person close to the crypto mining industry told Jiemian News that due to the previous slump in cryptocurrencies, a large number of graphics card mining machines were shut down and sold off. The current mainstream graphics card prices on e-commerce platforms are close to a waistline, and the graphics card market has suffered a lot. This Ethereum merger and upgrade may also have a certain impact on Ethereum mining companies and mining pools. Once merged and upgraded, for ASIC miners, you can choose ETC tokens that have the same origin as the Ethereum hash algorithm for mining; for GPU miners that are well-known in the market, you can continue to mine other PoW tokens, and secondly, GPU It can also provide high-performance computing, rendering and other services for the Web3 middleware protocol.