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On August 6th, 2022, a pseudonymous trader known as Kaleo went on to Twitter explaining his bullish take on Ethereum (ETH) and Non-fungible Tokens (NFTs). The crypto analyst said the potential of Etheruem’s new upgrade is what makes him bullish on the NFTs sector. He also explained his keen interest in observing ‘The Merge’ upgrade on Ethereum.
The Merge is perhaps the most awaited upgrade on top smart contract blockchain – Ethereum network. Existing Ethereum network will be merged to the Beacon chain and in this way transition from proof-of-work to proof-of-stakes will take place. People within the crypto community hold different thoughts on the upcoming big update on Ethereum.
Amidst the ongoing discussion over different aspects and possible consequences of the Merge upgrade, Kaleo came with his perception towards this situation. Crypto traded says that given the fact that all the existing non-fungible tokens available on Ethereum will also present on the new chain. He pointed out that this meant NFT holders could double their digital art collections.
Kaleo explained the possible circumstances using an imaginary situation. He said that assuming after the merge, a semi-viable fork of ETH proof-of-work would emerge, named it pETH. Then owners of NFTs available on the chain before fork are available on both the chains.
He further emphasized on the possibility that any decentralized exchange would start supporting pETH, given the fact that the forked chain would have decent volume for NFTs and maybe the community would also start to speculate the dominant chain out of them.
Kaleo cited the price action of Bitcoin Cash (BCH) when it was forked out of Bitcoin (BTC) in 2017. He explained that after their fork, there was a moment where BTC and BCH appeared to come against each other in competition.
Crypto traders said to take an instance of a case study of Bitcoin Cash (BCH) in 2017. Following the fork, their momentary phase came where the amount of a BCH reached as near as 0.45 BTC. Kaleo agreed that although there were even more extreme weaknesses after this, this could be treated as a classic example of the speculative nature of these assets.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
