The news of the Ethereum Merge sparked optimism on the network. However, at the time of writing, ETH consolidated above USD 1,600 as the Merge craze began to ease over the weekend.

In the current relief rally, ETH has outperformed the king coin by gaining 19.07% in the past seven days. Now the question remains: will the King be able to carry the momentum into the Merge release in September?

ETH’s Current Performance May Provide an Answer

This week has seen a rebound for Ethereum as it continues to steer through the bear market.

Investors saw a sharp rise above $1,600 after being exposed to dramatic lows below $1k in June. But the release date of Merge around September certainly had an impact on the trajectory of the altcoin.

The transition is expected to be a fruitful addition to the network. The merger would lead to higher profitability in the Ethereum network in the coming months, according to an IntoTheBlock analysis.

As inflation continues to plague the global economy, Ethereum will become the largest deflationary currency.

Ether issuance is expected to drop 90% post-merger. In the wake of last year’s EIP-1559 release, 80%-85% of transaction costs are burned.

This will likely result in more ETH being burned than spent.

Currently, staking ETH yields returns of 3.9%, which is expected to rise to 6% to 7%.

Higher strike returns will in turn lead to more ETH being wagered. This will lead to more safety as it would become more expensive to acquire 51% of the ETH stake.

Source: IntoTheBlock

Increasing returns will mean higher profitability for strike providers like Lido.

Those who wager ETH will not be able to withdraw funds until 6-12 months after the merger. The ETH wagered on Lido will only grow in that scenario.

Source: IntoTheBlock

If macro conditions now continue to deteriorate, the situation for investors could change completely. Nevertheless, traders’ optimism remains high about Ethereum as they have a lot of expectations ahead of the release of ETH’s Merge.

This post Ethereum’s [ETH] Merge talk that investors should not miss

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