The Ethereum Merge is one of the most anticipated upgrades in the global crypto platform right now. The blockchain’s switch to the proof-of-stake (PoS) consensus mechanism will increase scalability and lower power consumption and lower fees.
Though, ETH is not the only cryptocurrency that is going to perform the network’s switch to PoS. The Merge will also affect a few other coins.
Ethereum Classic (ETC) :
Due to the shift to the PoS consensus mechanism, the network miners will be out of work, and their expensive mining arrangements will be unused. So, miners are searching for other blockchains to divert their resources and can continue earning rewards through mining. Ethereum Classic is one of the greatest platforms for these minings.
Ethereum Classic is the original entity of the Ethereum blockchain. It was forked in between the discordance around The DAO. The DAO was an investment organization based on Ethereum. It was hacked after hackers found a bug in its platform.
After the hack, several users wanted to fork the network and compensate the users who lost their capital. Though, a separate group stood against that idea. It was stated while disagreeing with the idea that users should suffer the consequences of unhealthy research investments.
The discord resulted in the fork of the Ethereum blockchain. Ethereum evolved as the new network. On the other hand, Ethereum Classic acted as the original chain.
Ethereum Classic is a blockchain based on proof-of-work. It expects to remain that way until the anticipated future. As a result, ETH miners get it as a durable platform after the Ethereum mainnet switches to the PoS consensus mechanism. That is one of the reasons why the price of ETC has increased over the last few months.
Ethereum Name Service (ENS) :
ENS is a naming system. It is based on the Ethereum blockchain. It provides services to users and businesses to convert machine-readable private keys into human-readable names.
The mechanism is the same as what Domain Name Service (DNS) does. It converts complicated IP addresses to easy-to-remember website URLs. Hence, ENS performs a long way to simplify decentralized transactions.
ENS increased 23 percent over the last three months. It sat at $10.8 at the start of July. Then it jumped to 13.34 at the time of writing. ENS hit a high of $18.1 at the start of August. Though, it lost most of its value due to the recent clutter in the global crypto market.
Notably, ENS is expected to see a rise with the protocol recording 2,744 ETH ($4.7 million) in revenue in August.
Firstly, the company did not utilize the impact of The Merge on rising sales. The switching from PoW to PoS cannot be considered a potential reason for the platform’s rise over the last couple of months.
Lido DAO (LDO) :
After The Beacon Merge, miners are expected to be replaced by stakes. The important thing is that a user needs to have at least 32 ETH to participate in the staking activity. That is worth around $52,000 currently.
Platforms like Lido have the opportunity to come into the market. The platform offers stake pool services. In that platform, several underfunded stakers can accumulate their ETH and start staking as a collective.
Notably, Lido is the biggest staking platform in terms of value locked into Merge’s executive smart contract. Recently, it contributes nearly 30 percent of the total staked value.
It is expected that if the Merge succeeds, Lido could get more stakers to come into their system. LDO has already jumped more than 106 percent over the last three months. LDO hit a high of $3.059 in mid-August.