After Ethereum merge, the famous token may be valued at over $6,000. Crypto traders have been looking for Ethereum price predictions in 2022 and if you are wondering when is the Ethereum merge, we’ve got you covered.
According to a discount cash-flow valuation model, after Ethereum merge, it may be valued at over $6,000 based on the cryptocurrency’s upcoming major upgrade, which will turn it into “an equity-like instrument.”
What to expect from Ethereum merge?
According to a report by Bloomberg Intelligence, Ethereum merge upgrade that will transition the network from a Proof-of-Work consensus mechanism to a Proof-of-Stake system in which network validators can stake their assets to confirm transactions opens the door for conventional financial ratios because blockchains have no direct costs and revenue equals profits.
Stakers get a slice of the revenue, the fees generated on the network, for assisting in its protection, similar to how Bitcoin miners are rewarded on the BTC network. According to the report by Bloomberg:
“If demand for blockspace and total fees paid increases, stakers will enjoy both higher payouts and reduced issuance, with the opposite also true.”
Ethereum price prediction 2022
The study notes that Ethereum’s transaction expenses increased 16 times to $9.8 billion last year. The growth came as the decentralized finance and non-fungible token (NFT) industries boomed, with much of their trade centered on Ethereum.
The publication appears to think that Ethereum is well-positioned for further price gains throughout 2022. It adds that Ethereum will generate $12.7 billion in revenue this year, up around 30% from last year’s figure. The report also predicts a 30% annual growth in cash flow over the next three years before reaching a terminal development rate in 2035. According to the data, Bloomberg Intelligence arrived at an ETH value of $6,120, $5,539, and $9,328 using three different discounted cash flow models.
Ethereum price in USD
Currently, Ethereum is at $3,223.30 and has been showing a downwards trajectory for the last two days according to the data taken from the CoinMarketCap.
When is Ethereum merge?
Staking on Ethereum, on the other hand, has shown signs of paying off for investors. Significantly, Coinbase, a prominent cryptocurrency exchange, expects Ethereum staking rewards to double following the network merger. In a communication to customers, Coinbase stated that after the Ethereum mainnet joins with the Beacon Chain – a move it claims will happen “expected around June of this year” – ETH staking yields could rise as “rewards will incorporate net transaction (ex-base) fees currently paid to miners.”
The Ethereum network mergers will occur once the Ethereum mainnet is combined with the Beacon Chain, signaling “mark the end of proof-of-work for Ethereum and the full transition to proof-of-stake.” The combination is “planned to precede the rollout of shard chains.”