What does Ethereum Merge means for Ethereum holdersEthereum holders eagerly await the Merge scheduled for September 13th. The Ethereum Merge will affect ETH holders since price volatility is expected to increase as speculations for a possible price increase continue to engulf the market. However, ETH holders need to be fully prepared for the Merge that will see Ethereum transition from the Proof of Work consensus mechanism to the Proof of Stake.
The upgrade from PoW to PoS will mean ETH miners can no longer mine, and as a result, ETH miners are forking ETH to keep a PoW version of the token to enable continued mining. As a result, ETH PoW tokens will soon be airdropped to ETH holders, and here are some strategies you can use ahead of the Ethereum Merge.
Essential strategies for ETH holders ahead of the Ethereum Merge
In order to take advantage of the awaited Ethereum merge and receive the ETH PoW token, you need to have complete control of your ETH tokens. Full custody of your tokens on a hardware wallet that supports the forking will allow you full control of the forked tokens. Although you could receive the forked tokens if you are holding your Eth on an exchange, your exchange may or may not credit your wallet.
Additionally, unwrap all the wETH tokens. The idea is to maintain full interaction with the Ethereum mainnet. By unwrapping the tokens, you interact with the ETH mainnet, and you’ll be able to receive the ETH PoW tokens after the Merge.
Similarly, you should remove all the liquidity from all DeFi protocols. Any Ethereum being used to offer liquidity services on all DeFi platforms will not be eligible for the airdrop. To get ETH PoW tokens, you must withdraw all Ethereum used for liquidity. A good strategy here would be to withdraw and become eligible for the airdrop and then recommit the Ethereum tokens for liquidity after the Merge.
Also, it is essential to bridge the ETH tokens to the ETH mainnet. Having Ethereum tokens locked up on Layer 2 scaling solutions such as Polygon, Avalanche, or Optimism will not earn you ETH PoW tokens. It is better to transfer all your ETH tokens back to the mainnet ahead of the Merge to receive the ETH PoW tokens.
What to expect after the Merge
The Merge marks a critical stage in the growth and evolution of crypto. Ethereum network is home to several Altcoins, and such changes often affect the performance of these tokens as well as ETH’s price. Positioning yourself to receive the airdropped ETH PoW tokens is advantageous if you still want to interact with the ETH PoW fork.
However, it is essential to note that interacting with the ETH PoW is risky and may lead to losses after the Merge. Other possible risks may include replay attacks and the possibility of ERC 20 tokens on the PoW chain losing their value unless people continue using the ETH PoW chain.
Conclusion
The Merge is expected to happen a few days from today, and Ethereum holders should prepare adequately for it. Those interested in making profits off the Merge should consider the strategies above in order to be eligible for the anticipated ETH PoW airdrop that will keep ETH miners busy after the upgrade.
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