The 'Merge Trade' Has Begun, Experts Say, as Ether Surges And stETH Discount Narrows

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The 'Merge Trade' Has Begun, Experts Say, as Ether Surges And stETH Discount Narrows
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Renewed clarity about Ethereum's 'merge' upgrade's timeline seems to have galvanized investor interest in ether and its staked derivative on Lido finance called stETH, offering a reprieve to the battered cryptocurrencies. godbole17 reports

"Any positive news at this point is a welcome thing for markets," Jason Pagoulatos, markets associate at Delphi Digital, told CoinDesk TV on Friday."But it's definitely not the only reason ETH is up."

John Ng Pangilinan, a managing partner at Singapore-based Signum, voiced a similar opinion, saying the market has priced in macro and crypto-specific risks and is now focusing on the upcoming positives. Ether's bounce is accompanied by renewed user demand for the blockchain, a sign the rally may have legs.

"The amount of gas used on Ethereum has spiked this month after several months of precipitous decline, indicating that Ethereum usage and demand for block space is returning following a period of relative disinterest," Chrsitine Kim, research analyst at Galaxy Digital, wrote in a weekly newsletter published Friday.

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