Cryptocurrencies gain ahead of The Merge scheduled for September 15

Last week, major cryptocurrencies such as Bitcoin i Ethereumhave taken a jump. This was because markets continued to absorb positive news and economic developments.

Bitcoin has moved back to $ 25 for the first time since June, although it still hasn't hit a milestone on the eToro platform last week. It currently trades around $ 000 after it started under $ 24 last week.

Meanwhile, Ethereum rose during the week. It started from below $ 1 - reaching a range close to $ 700 on Sunday after positively responding to updates on The Merge. It currently stands at around $ 2.

Both cryptocurrency and markets generally responded positively to lower-than-expected US inflation in the middle of the week, thus confirming the recent link of performance to equities.

Institutions are lining up to return to cryptocurrencies 

The cryptocurrency sphere was alive with discussions about a series of institutional announcements related to cryptocurrencies. In the last few days, Abrdn bought a stake in Archax, BlackRock announced the creation of a private bitcoin fund as well as a tightening with Coinbase for institutional investors in cryptocurrencies.

By observing other instances of institutional trading and investment that are now widely available, we see a clear trend to be followed by private investors. First, with market valuations still much lower than previous peaks, institutions are clearly starting from attractive price points. Even so, they also show a more fundamental commitment to the sector and its innovation.

In recent months, we have seen cryptocurrency markets follow stocks, which is a tangible signal that institutional players are more involved in the sector. However, these differentiated moves by major players such as Abrdn and BlackRock - while not bolstering the price right away - reflect a fundamental confidence in the sector that the wider market will be watching closely in the future.

The Merge may take place on September 15th

The Merge - under which the Ethereum network will transition from the model proof-of-work (PoW) on proof-of-stake (PoS) - could potentially start on September 15.

There is now clear evidence that the market is becoming more sensitive to developments around The Merge. The price shows an upward trend and reacts positively to the development of the situation, as investors buy the token before the change is introduced.

But there is a more fundamental long-term potential here - switching to PoS will change the token economy. While other blockchains already use PoS, none has the scale and variety of applications that Ethereum does.

Cardano is ahead of XRP

Blockchain token Cardano, ADA, outperformed XRP in market capitalization, becoming the sixth largest cryptocurrency, data shows CoinMarketCap. The ADA currently has a market value of just under $ 20 billion, roughly $ 90 million more than XRP.

While these changes in isolation cannot be an indicator of how the market is functioning, it is clear that a highly competitive market continues to develop, which is a good sign. Cardano, like Ethereum, has undergone some significant changes to its network to increase its innovation for users and investors.

It's good to see that the market is still going strong despite the tough conditions over the past few months. Investors should always try to diversify among the assets they invest in, but as long as the sector remains competitive and innovative, the future looks bright.