The Ethereum Merge Is the Main Contributor to July Rebound: JPMorgan

The price of ether surged 70% in July, outpacing other major cryptos.

AccessTimeIconAug 8, 2022 at 7:59 p.m. UTC
Updated May 11, 2023 at 6:48 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

JPMorgan analyst Ken Worthington said anticipation of the Ethereum Merge was a sizable force behind the big July move higher in ether (ETH) specifically, and crypto in general.

After the completion of two testnets ahead of the event – now expected the week of Sept. 19 – that will take the Ethereum blockchain from a proof-of-work system to a proof-of-stake consensus mechanism, ether's price jumped 70% in July. It is currently trading at about $1,780. As comparison, bitcoin (BTC) rose 27% in July, while SOL, the token of the Solana system, gained 38%.

Also helping the big move in ETH, Worthington said, is the overall decentralized finance (DeFi) sector, where total value locked (TVL) rose 22% last month.

“Given DeFi tends to be built on Ethereum, the amelioration of earlier concerns on DeFi together with the better reports about the Ethereum Merge are likely driving the particularly strong price appreciation of ETH relative to [b]itcoin,” wrote Worthington in the report.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Cam Thompson

Cam Thompson was a news reporter at CoinDesk.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.