Will April Showers Wash Away Crypto Gains From The End Of March?
Cryptocurrencies finished out March on the positive side compared to how they opened in the beginning. However, April is looking to wash away gains from the last week of March. Crypto had a tough couple of months in 2022, but was seeing some recovery in March.
As March drew closer to an end, it looked as if crypto would weather the storm and return to their highs from the start of 2022. However, right before the calendar turned to April, it would be like a switch was flipped and crypto would fall. While online sites in April will have sports personalities giving their MLB picks today, you can look here for some picks on cryptos for today.
Ethereum Merge is Set to Send Price Higher
The breakdown of the Ethereum merge is the changing of Ethereum. It is going from a proof of work algorithm to a much more environmentally friendly proof of stake system. People following this say that when the merger is completed, staked Ethereum prices could double or triple on the proof of stake system.
Their consensus is that staked Ethereum will increase to over $100 billion in value. While the merger isn’t set to happen until later in 2022, getting in now is the best move. Ethereum’s value is projected to go up after it switches to the proof of stake system. If people enter now, they could make more money.
Ethereum Set to be More Environmentally Friendly
The biggest take away from a move to the staking system would be Ethereum’s impact on the environment. It is estimated that the merge to a proof of stake system would reduce Ethereum’s power consumption by a whooping 99.95%. That makes Ethereum’s upgrade a victory for people who love the environment and cryptocurrencies.
Power consumption by cryptocurrencies is a hot-button issue. In the United States, President Biden signed an executive order on cryptocurrencies in March, with a focus on the responsible development of digital assets. People saw the order as a shot at Bitcoin. That’s because Bitcoin consumes the most power of all cryptocurrencies on the market.
Proof of Stake Can Make Ethereum Deflationary
Inflation is a growing concern for those who hold fiat currencies. Countries like the United States are facing 40 year highs in inflation. The current proof of work system Ethereum is on is an inflationary system. It allows miners to mint two new Ethereum coins for every proof of work race they complete.
The proof of stake system Ethereum will adopt would have a burn the Ethereum supply. It would require miners to stake the coins for rewards versus solving a puzzle to create new Ethereum coins. It would also burn a portion of the gas fees on Ethereum transactions that are collected. These moves are posing Ethereum for a bull run in 2022 when the switch is completed.
Can Dogecoin Have a Repeat Performance from April 2021 this April?
Last year around this time, Dogecoin would be the buzz-worthy crypto of 2021. The meme crypto gained traction because of Elon Musk, the proclaimed “Doge-Father” of Dogecoin. His tweets, and announcement of being a guest host on Saturday Night Live (SNL) for May 2021, would fuel the Dogecoin rally.
While Dogecoin is down from its starting point in 2022, it is still higher than its April 2021 starting value. Musk is also still a bull for the meme coin as he continues to tweet about Dogecoin. However, it will take more than tweets from Musk and an appearance on SNL to help send Dogecoin back to the moon.
The spring and summer months have been a boon for Dogecoin in the past. If history repeats itself, Dogecoin could see another rally going deeper into the spring months of 2022. However, most of the biggest buzz with Dogecoin came from businesses and celebrity personalities accepting the meme coin
Dogecoin has the potential to return to the top. The inflation rate of Dogecoin could be a problem long term. The crypto has an infinite token supply, with $5 billion worth of Dogecoin added to the supply every year. Until this is addressed, Dogecoin’s potential will be limited in 2022 and beyond.