3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

ETH's price isn't the only benefit from Ethereum's move to Proof of Stake in September.

3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

After a long time of holding up, Ethereum is at long last arranged to gotten to be a full-fledged proof-of-stake (PoS) blockchain. Other than Ethereum’s local token, Ether (ETH), the valuation of a few other tokens has not as it were profited significantly but seem moreover keep outflanking ETH after the Merge. 

Ethereum steps closer toward the Merge

The driving keen contract platform completed the final of its three open testnets, named Goerli, on Aug. 11. In this manner, there ought to be no delays in Ethereum’s Consolidate, anticipated to go live on Sept. 19. 

 Ether cost hopped 5% to around $1,950, its most elevated level in over two months, after the Goerli overhaul. In the mean time, certain crypto resources that seem advantage from a fruitful Consolidate are experiencing upside moves and have indeed been beating ETH within the past month.
ETH/USD daily price chart. Source: TradingView

Will these tokens continue to outperform ETH price into September? Let’s take a closer look.

Lido DAO (LDO)

The Merge will replace Ethereum’s army of miners with validators, who will be required to front 32 ETH as an economic stake.

This major staking requirement has opened up opportunities for middlemen, i.e., platforms that collect Ether from underfunded stakers and put the proceeds together to become validators on the Ethereum blockchain. Lido DAO is one among them.

Lido DAO is the leading staking service in terms of value locked inside Merge’s official smart contract. Notably, it has poured 4.15 million ETH into the so-called Eth2 contract, leading Coinbase, which has staked approx. 1.55 million ETH on behalf of its clients.

ETH 2.0 total value staked by provider. Source: Glassnode

A successful Merge could boost the demand for Lido DAO services.

In turn, it could prove bullish for the platform’s official governance token, LDO, whose value had already soared by more than 200% since July 14, when Ethereum first announced the likelihood of becoming a PoS chain in September. 

LDO/USD daily price chart. Source: TradingView

Therefore, LDO is one of the primary crypto assets that could benefit the most from Ethereum’s successful transition to PoS.

Ethereum Classic (ETC)

Ethereum Classic (ETC) is another asset that has grabbed the bulls’ attention in recent weeks. That is primarily due to its potential to provide a haven for miners exiting the Ethereum network.

Since Ethereum Classic is the split chain from a contentious hard fork in 2016, it exhibits almost all the technical qualities of the current proof-of-work (PoW) Ethereum network, making it a natural refuge for ETH miners.

Like LDO, ETC has also rallied by over 200% since the Ethereum’s Merge launch announcement on July 14. Therefore, its likelihood of continuing its uptrend is high ahead and after the Merge.

ETC/USD daily price chart. Source: TradingView

Optimism (OP)

Optimism is an Ethereum rollup service. In other words, it aggregates mass transaction data off-chain into batches and releases results back to the Ethereum mainnet when a consensus is reached.

The so-called layer-2 solution could benefit from Ethereum’s Rollup-Centric Roadmap after the Merge. Interestingly, OP, Optimism’s governance token, has rallied nearly 250% since the Merge release date announcement.

OP/USD daily price chart. Source: TradingView

The prospects of Ethereum deploying Optimism on its network after the Merge could serve as a bullish catalyst for OP price. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

What's Your Reaction?