Recently, Ethereum whales are increasing their accumulation of SHIB as the Merge is showing signs of going on the right track and is likely to happen in September as announced. So what is special about this meme coin and how will it affect after the merger?
As updated in a Coincu news article, despite Shiba Inu losing 90% of its value in the bear market, the cryptocurrency continues to be the focus of attention of Ethereum whales. According to WhaleStats, which tracks uploaded accounts, two whales bought a total of 533 billion tokens ($3.5 million).
Ethereum Merge and Shiba Inu
The switch from PoW to PoS will fundamentally alter how things work. The new configuration will make the network more inexpensive, faster, and energy-efficient. Proof-of-stake is subject to different criteria than proof-of-work. Validators will take the place of miners. The entire Ethereum network will undergo a massive change.
This will eventually have an impact on everything that is powered by the Ethereum network, including Shiba Inu. SHIB, which has emerged as one of the most popular memecoins with a whole lot of developments planned for the year ahead.
The Ethereum merge will see the Beacon chain merge with the mainnet. The primary and ultimate change that will be induced with the merge will be the network’s transition from proof-of-work to proof-of-stake. However, this transition will not hamper the normal functioning and operations of Shiba Inu.
The primary change will be the process of validating the transactions. Miners will be replaced by validators, which will change the process of how each transaction is validated. The merge claims to be an environmentally friendly consensus, and this change might be evident in SHIB transactions, as it might cause some delay post-merge. This is just a possibility, as a successful merge could not hamper the transactions, but might take some time to settle in.
Ethereum Sharding, a work-in-progress that is expected to be implemented in 2023, is said to improve scalability. Ethereum 2.0 is anticipated to improve transaction speed and the capacity of the network.
The Ethereum network has a long history of higher gas fees that has disappointed the ETH community. A possible sharding launch is likely to reduce the gas fees, which could be happy news.
For all SHIB holders that are worried about higher ETH gas fees, Shibarium could turn out to be a relief as it can help in minimizing the gas fees with its transaction bundling capability.
The effects of The Merge are likely to be even greater when the process officially kicks off in September. This is not the most accurate prediction because this impact needs to be assessed throughout the process.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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