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May 22 โ€ข 9 tweets โ€ข 5 min read
Few days ago, Ethereum developers announced that the merge could take place in August.

How will this affect ETH?

What comes after the merge.

Below is what I found out during my research ๐Ÿ‘‡๐Ÿ‘‡
Firstly, the merge is all about the coming together of ETH 1.0 which works on POW and Beacon Chain which works on POS.

After the merge, the Ethereum network will now use POS as its consensus mechanism.
How will the merge affect ETH?

When Ethereum moves to POS, miners will no longer validate transactions, but stakers will take over.

This will cause more people to stake their ETH in other to validate transactions thereby reducing the circulating supply of ETH
A reduction in supply should increase the price.

However, you can't bet that people must lock up their ETH so this is not a financial advice.

Currently speaking there has been up to $10M worth of ETH locked up in the beacon chain.
Also, the ETH burning will continue bringing more reduction in the circulating of it.

What happens after the Merge

1. Miners will be relieved of their work.

2. Energy usage will be reduced to 99%

3. Withdrawals from the beacon chain will be enabled post-merge.
4. Sharding will take place after the merge but not immediately.
Let's discuss a bit on Sharding;
This is the process of splitting the Ethereum blockchain into partitions called shards for faster data processing
Benefits that the merge + sharding will provide;

* General growth of Ethereum Network
*Transaction speed increase as sharding will reduce network congestion.
*Increased scalability

Note: Ethereum merge won't reduce transaction fees.

#Ethereum #DeFi
However, I believe that sharding with roll-ups integration can reduce the surging gas fees.

If you learnt anything new here, your retweet is very important to me as I make educational content on crypto every week.
Then follow my mentors below
@thedefiprincess @thedefiedge @Route2FI @RobotDefi @VanessaDefi @InvestorNnKay @Dreamboat_Jeric @BitBeco @Cov_duk @0xLosingMoney @VirtualKenji @IreGoodness

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More from @ModestusOkoye

okoye Modestus Profile picture
May 19
One of the things you consider while doing your research is TOKENOMICS

Tokenomics measures a token's supply, how it is issued and how its utility will affect the coin.

This thread ๐Ÿงต breaks down the metrics you consider while looking at the tokenomics of a project.

1/1
Tokenomics simply means the economics of a token.

It shows an analyst what makes a token to be valuable to investors and a sneak peek into what the future supply can look like.

If you're doing your research, these are the metrics you can look out for under tokenomics.

2/2
1. Total Supply

This is the total amount of tokens that are already in existence excluding the ones that are already burnt. They can either be in circulation or locked.
Read 13 tweets
okoye Modestus Profile picture
May 14
One of the tools used by DEFI analysts is @DefiLlama.

As a beginner, it's likely going to be confusing how to navigate this website and be profitable from it.

This thread will open your eyes to the key features of this website.

ULTIMATE GUIDE TO DEFILAMMA

THREAD ๐Ÿงต
Defilamma is a TVL aggregator that collects data from several protocols and assembles than in one place.

TVL is the total money locked in a Defi protocol and not the money invested in the native coin of a DEFI protocol.

Therefore increased TVL doesn't mean increased coin value.
Rather it shows that more people are trusting such an ecosystem with their funds.

In @DefiLlama, there are other features you will love to see and utilize as an analyst aside from checking DEFI TVL

They include;
Read 18 tweets
okoye Modestus Profile picture
May 11
HOW TO COMBAT FOMO AS AN INVESTOR

Have you ever bought a coin with excitement only for you to feel deep regret because it's going against you?

I have been there a lot of times and I can tell that it isn't a moment to enjoy.

I developed a strategy that helped me,

Read through
FOMO is an acronym for Fear of missing out which is a strong fear that makes a person think that he is missing out on a rewarding experience.

If you have been a victim of this, don't blame yourself to death because it's part of the learning curve in crypto.
However, there are questions I ask myself that helps me. They are;
---WHY?
---WHERE?
---WHEN?
---HOW LONG?
Read 19 tweets
okoye Modestus Profile picture
May 9
As a DEFI analyst, one of the things you need to put into consideration is the 24hours trading volume.

I often hear people ask how to use this.

Today, let's explore the strategy I involve while using 24hours volume

Just follow this THREAD ๐Ÿงต
For the sake of newbies let's take a look at what a trading volume is.

Trading volume in cryptocurrency is the number of tokens BOUGHT or SOLD in a given PERIOD.

Keep in mind my keywords
**BOUGHT
**SOLD
** PERIOD
These three keywords will help you to understand that trading volume isn't only about people buying thus its increase might not mean that people are only buying and give versa.

Also, it's based on period, but for the sake of this post, we will focus on 24hours Trading volume.
Read 16 tweets
okoye Modestus Profile picture
May 4
In one of my tweets, I asked this question about the Merge and Sharding.



Below are my honest answers on the effect of this Upgrade on ETH

A Thread ๐Ÿงต
First and foremost, the merge will join the beacon chain(The chain working with POS) and the execution chain (the chain working with POW) together.

If this is achieved, they will scrap the POW and start using POS. This will reduce the energy use of Ethereum by 99%
And miners will not be needed again.

The Ethereum network will be secured us in POS consensus, where validators stake their ETH to validate transactions based on the number of ETH they have and time locked.

Currently over $10M worth of ETH has been stated on the beacon chain
Read 8 tweets
okoye Modestus Profile picture
Apr 30
As a market analyst or researcher, one of the things you look out for during research is the people funding a project and their track record over the years based on how well the projects they funded did.

I think you will be interested in this new crypto fund firm ASYMMETRIC. Image
Recently a new crypto fund entered the crypto space with backup from top VC firms like @a16z and Solana.

This firm is called Asymmetric.

In this thread ๐Ÿงต we will know what this company is and who is behind it.
Asymmetric is a crypto firm that invests in startups in the crypto industry. So we can call it a venture capitalist(VC) in this context.

For newbies here, I will like to explain what a Venture Capitalist is so that we will be on the same page.
Read 18 tweets

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