The most awaited update on the Ethereum network, dubbed The Merge, is scheduled to launch by September. Ever since the Ethereum developers announced the launch dates, many changes were witnessed around the crypto space. The most notable change was experienced by ETH price where the crypto asset managed to break the long bearish trend. Along with this, several analyses brought the potential threat to the merge upgrade.
According to Enigma Securities’ recent analysis, most crypto traders assume that the event would go seamlessly without any issue. However, the analysis suggests, that there are slight changes of stETH that could bring some delays or stitches in the upgrade.
stETH or Staked Ether is a prominent derivative of Ethereum’s native crypto asset Ether (ETH). Lido protocol is behind the issuance of stETH that can be used for free trade of Ether, even when it is staked over the blockchain. Enigma Securities reports noted that the ETH derivative holds a possibility of nearly 6.25% to 6.5% to make an impact on the Merge. This shows the chances of the upgrade could face bugs or have to deal with delays.
The pricing model of Enigma signifies stETH equivalent to 1 ETH brings a yearly return of 4%. In case of a successful upgrade, the stETH investor would receive 1.04 ETH within a year.
At the time of writing, stETH is trading at around 0.973 ETH. This indicates there is about a 93.5% to 93.75% chance that the Merge upgrade would go without any issue and with no delays. Even so, the percentage that Enigma estimates is even lower than the other expectations that other analyses brought citing the ongoing development in the upgrade.
Enigma Securities analyst – John Freyermuth –said that there is high confidence within the market due to the Merge. But the only risk that seems to show up is related to stETH.
Source: https://www.thecoinrepublic.com/2022/08/16/staked-ether-steth-could-cause-glitch-or-delay-in-the-merge-analysis/