According to a note on Monday, the markets appear to have found a floor after the fall of bitcoin.
The total market value of cryptocurrencies has returned to the $1 trillion level, after surging from their June lows.
There are two reasons why the market is strong, according to analysts at JP Morgan.
The collapse of Terra/ Luna led to tens of billions of dollars in losses and triggered a leverage unwind that wiped out firms like Three Arrows Capital.
After the launch of the Sapolia testnet in July and the Ropsten testnet in June, we think the real driver is the ether merge.
The upcoming event has attracted a lot of attention. A proof-of-stake system is supposed to be faster and more efficient than a proof-of-work system when it comes to energy usage.
It is thought that a successful merger of the two companies later this year will boost sentiment in the market. Depending on how the Georli testnet performs, the merger is expected to happen in September. The test is scheduled for August 11 and is one of the final steps before the merger.
There is still a long way to go before the ether market recovers from recent losses. Daily trading volumes in NFTs have collapsed in the last year, according to a report.
As investors look for a much-needed boost in sentiment, the upcomingEthereum merger could have a big impact on the recovery of the cripto market.
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