Ether hit a more than two-month high on signs that a plan to upgrade the ethereum blockchain passed a major test, potentially paving the way for one of the most significant changes in the cryptocurrency sector.
The token rose as much as 4.1% on Thursday in Asia and was trading near US$1Â 890 as of 1.58pm in Tokyo — more than double a June low below $900 and far outpacing the rebound in bitcoin over the period.
Ether is the native coin of ethereum — the most important commercial blockchain — and its ride higher atop the optimism surrounding the “Merge”, as the planned network upgrade is known, has become emblematic of the nascent crypto rebound from this year’s painful rout.
The Goerli test conducted late on Wednesday New York time was a kind of dress-rehearsal for switching the ethereum network from proof-of-work to a more energy-efficient proof-of-stake system. The full shift is expected next month.
BREAKING:
The Goerli Testnet has activated Proof of Stake
Mainnet🔜™
— bankless.eth (@BanklessHQ) August 11, 2022
Ethereum co-founder Vitalik Buterin retweeted a post saying the test had activated proof-of-stake. In another tweet, Tim Beiko, a computer scientist who coordinates ethereum developers, posted a screenshot suggesting the test of the planned Merge had been successful.
The software upgrade has been in the works for years, and ethereum’s dominant role as a commercial highway in crypto underlines the sensitivity of the change.
The blockchain supports more than 3 400 active decentralised apps, allowing for everything from gaming to trading. Ether tokens have a $229-billion market value, according to CoinMarketCap. — Suvashree Ghosh, (c) 2022 Bloomberg LP