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Starting tomorrow, the dynamics of cryptocurrencies will be determined by Ethereum developers. On Thursday, Ropsten’s oldest testnet will begin a six-day transition from a PoW algorithm to a PoS.
With a successful completion of the test, the developers of Ethereum will transfer the test networks Goerli and Sepolia to proof of share, creating all the conditions for the global migration of users of the second largest blockchain.
According to preliminary plans, Ethereum 2.0 should launch in August. Before this event, node operators running in the zero phase of the Beacon Chain PoS network need to activate the Bellatrix update.
The process of merging on the testnet and hard fork in the existing PoS network, as well as the rejection of the traditional “freezing of the complexity bomb” in the Ethereum network, create certain risks for investors in the cryptocurrency market, which have already negatively affected the ETH rate.
The first largest capitalization altcoin, lost 2% on Tuesday, despite the steady daily growth of Bitcoin.
The fall in the Ethereum rate has had a negative impact on most digital currencies whose blockchains contain smart contracts. The total market capitalization fell by 0.56%.
The drop will intensify if developers delay the test merger or set a later date to postpone the transition to Ethereum 2.0. On the other hand, the next week could turn into an explosive growth of cryptocurrencies if Ropsten becomes a PoS network in the middle of next week.
All events of the stages of the PoS transition of Ethereum are now under the close attention of bidders. It is worth being prepared for unexpected declines in ETH, whose rate has lost 60% of historical highs.
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