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One of the most hotly anticipated events in the world of crypto this year—perhaps ever—has begun. You can tell just by looking at the market.
Ether ETHUSD –4.07% prices were outperforming on Tuesday after Ethereum completed a first key step in "The Merge"—a fundamental upgrade to the blockchain network that underpins the world's second-largest cryptocurrency.
The upgrade will cut Ethereum's carbon footprint by making "crypto mining" redundant and introduce new ways for investors to earn yield. It's a move that will likely have ripple effects in the stock market, too, from trading platform Coinbase Global COIN –3.80% (ticker: COIN) to chip maker Nvidia NVDA –1.33% (NVDA), which has been a supplier of mining equipment.
The Merge has officially started, with crypto intelligence firm Messari confirming that the Bellatrix upgrade to the Beacon Chain has arrived, setting the stage for the final "Paris" upgrade likely to come around Sept. 15, which will complete the process. The Beacon Chain controls the "proof of stake" system that Ethereum is embracing over its existing "proof of work" system, which is used by BitcoinBTCUSD –0.95% .