A well-known cryptocurrency expert says that the possibility of a new fork of Ethereum (ETH) makes him very optimistic about the non-fungible token (NFT) market.
A trader who goes by the name Kaleo tells his 530,000 followers that he’s excited about the upcoming merger of Ethereum with the Beacon Chain, which already uses the proof-of-stake method.
Some people are skeptical about Ethereum’s big update, and there has been talk of a possible hard fork back to a proof-of-work (POW) chain after the merging.
Kaleo says that if this happens, it’s likely that all non-fungible tokens on Ethereum would also exist on the new chain. This means that NFT holders’ collections may almost double.
“Hypothetically – let’s say there’s a semi-viable ETH proof-of-work fork that emerges post merge (to make it easy going forward, let’s call it pETH).
Before the split, any ETH NFTs you had were still valid on both chains.
If any DEX (decentralized exchange) accepts pETH, there will be a fair amount of traffic for NFTs on the forked chain as people guess which chain will be the most popular.
Kaleo looks at how the price of Bitcoin Cash (BCH) changed after it split from Bitcoin (BTC) in 2017. An expert on cryptocurrencies said that for a short time, BCH tried to compete with BTC.
“Take BCH in 2017 as a case study
After the fork, there was a decent amount of brief hype where one BCH hit as high as nearly 0.45 BTC.Obviously, we’ve seen extreme attrition since then, but that doesn’t change the potential behind the speculative nature of the initial bet.”
There has been a lot of loss since then, but that doesn’t change the fact that the original gamble was a risky one with a lot of potential.”
Some people may see a proof-of-work fork of Ethereum as the “original” (OG) version of the most popular smart contract platform. Kaleo thinks that some investors may give NFTs on the fork a higher value because of this.
“Talking about the nature of NFTs, a huge draw for many collectors is the OG status. Take CryptoPunks for example.
Who’s to say that if the POW chain does develop its own viable ecosystem down the road, that a narrative won’t develop for owning OG NFTs on the ‘OG chain.’”
Kaleo says he is “extremely positive” about some of the best Ethereum-based NFT collections right now because this is likely to happen.
“To summarize, that’s one major reason why I’m still incredibly bullish on OG blue chip ETH NFTs heading into the merge and believe that there will be a surge in the current NFT market volume lull as these narratives continue to develop.”
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