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ETH merge in progress: Comparison of ETH2 and ETHPoW and trading strategy analysis
Comparison and Analysis of ETH2 and ETHPoW
As the Ethereum merge approaches, we explore the potential chain fork scenarios that may arise during the merge, namely the possibility of generating two tokens: ETH2 and ETHPoW.
From the perspective of token price and economic chain usage, ETHPoW is likely to become a niche-supported chain. Although the ETHPoW chain faces numerous technical challenges and its long-term viability is in doubt, it may still provide opportunities for traders and speculators in the short term.
The Ethereum merge is expected to take place in September 2022, mainly involving the cessation of Proof of Work ( PoW ) mining, transitioning to a Proof of Stake ( PoS ) mechanism. However, some PoW miners may continue to mine on the ETHPoW chain.
The main challenges faced by the ETHPoW chain include:
Ice Age ( Question: A hard fork new client is needed to remove the difficulty bomb.
Locked Staked ETH: Approximately 14 million ETH may not be usable on the ETHPoW chain.
Stablecoin Support: Mainstream stablecoin issuers may only support the ETH2 chain.
Technical and consensus issues: Need to develop new clients and reach consensus on parameters.
For traders, the merge may bring some interesting strategies:
Convert assets to USDC before the merger.
Immediately sell USDC for ETHPoW tokens on the ETHPoW chain after the merge.
Sell for profit after waiting for centralized exchanges to support ETHPoW deposits.
However, executing this strategy involves numerous technical difficulties and risks, requiring careful consideration.
![BitMEX Research丨Discussing the Possibility of Forks in the Ethereum Merge and the Value of "Candies"])https://img-cdn.gateio.im/webp-social/moments-9093e3ff9958ed61f9011cfef1b5fbc9.webp(
Overall, although ETHPoW faces numerous challenges, as long as the chain exists, it may attract market attention and speculative behavior. The ETH/ETHPoW trading pair is expected to become popular. The merger will undoubtedly bring new hotspots and opportunities to the crypto market.