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JPMorgan analyst Ken Worthington noted that the expectation of an Ethereum merger was an important factor that caused a significant July exchange rate movement for both ETH and the entire cryptocurrency market.
After the completion of the merger process in the two test networks, on September 19, the transition of the Ethereum blockchain from the proof-of-work consensus mechanism to proof-of-stake is expected. Thanks to the certainty in the timing, ETH jumped by 70% in July and is now approaching the $1800 level. For comparison, the BTC rate rose by 27% in July, and SOL added 38%.
The decentralized finance (DeFi) sector has also helped ETH’s significant upward movement, Worthington said, with the total value of assets locked down (TVL) rising by 22% last month.
“Given that DeFi projects are typically based on Ethereum, the removal of previous concerns about the DeFi sector, together with positive reports of the Ethereum merger, likely caused ETH to appreciate more significantly compared to BTC,” Worthington said.
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