Ether (ETH) price outpaces bitcoin (BTC) as ethereum merge nears

Since finding a bottom in mid-June, ether has massively outperformed bitcoin as investors anticipate a major upgrade to the ethereum blockchain.

Bitcoin hit a low of $17,601 on June 19 and is up around 31% since then as of Friday’s trading price, according to CoinDesk data.

Ether also hit its recent low on June 19 at $880.93, but has surged 106% since then.

The huge divergence in performance in the two cryptocurrencies come down to one major factor: a big upgrade in the ethereum blockchain. Ether is the native cryptocurrency of the ethereum network.

Ethereum’s upgrade, called the “merge,” is slated to take place on Sept. 15 after numerous delays. The blockchain will change from a so-called proof-of-work system to a model called proof-of-stake. A full explanation of the merge can be found here.

Proponents say that the move will make the ethereum network faster and more energy-efficient.

“The upcoming Ethereum Merge is the biggest narrative in crypto right now and explains why Ether has left Bitcoin in its wake in the past month,” Antoni Trenchev, co-founder of crypto trading platform Nexo, told CNBC via email.

“A blockchain that pitches itself as being energy efficient will always capture the imagination of the masses and that’s why Ether has the wind in its sails ahead of the Merge, a move to proof of stake.”