The Ethereum Merge’s Post-Merger Effects
Despite the success of the improvement, the market did poorly. Since reaching a high in the $1,700+ range, Ethereum prices have actually fallen to below $1,200+. By September 20, the price had increased to nearly $1,300. Since there were no network outages or security concerns to be concerned about, the price drop does not appear to make any sense. Prior to The Merge, there were predictions that ETH prices would decline. This is more a result of market manipulation by traders and whales to artificially inflate the price of ETH.
Prices for ETH did rise in the days leading up to The Merge. Traders would have made money by selling post-Merge if they had purchased at a lower price range when it peaked in the $1,700 level. As a result, prices decline, giving investors the chance to buy the dip. This is nothing new and has been occurring in the crypto industry for quite some time.
For investors and ETH holders, this comes at a horrible time, unfortunately. This occurs as the US Federal Reserve raises interest rates to combat inflation. The market is being impacted by the Fed’s potential to raise interest rates as long as inflation persists. News of the SEC’s ETH restrictions has also been met with disapproval.
The Ethereum network is now more efficient and has a less carbon footprint, institutions will likewise have a more favorable impression of it. Rising usefulness of ETH will accompany increased demand, which could eventually result in higher pricing. In order to increase the value of ETH as an asset, projects must properly implement their use of the Ethereum blockchain. Even while there is a lot of manipulation and speculation, the market can still set the price, that much is certain.
The Future of the Ethereum Network
About a week has passed since ETH migrated to proof of stake. How has ETH held up now that the dust has settled? At first look, it appears that Ethereum has not fared well; since the merger, it is down 20%. Was the merge a failure then? No. The integration was successful and trouble-free. Therefore, the reason why ETH is declining is that this was a sell-the-news type of event where the price is pumped before it occurs. Then stops after the event is over. This is what took place with ETH. This is not a bad thing because it shows a positive interest in the currency.
What does the merger therefore portend for the network’s future? The first and most important change is that ETH is now proof of stake, which eliminates the need for miners to maintain the network. This is a huge issue, but we’ll return to it shortly. Therefore, in proof of stake, you stake money or ETH to confirm transactions. Earn an annual percentage yield (APY) of 8.5% if you do that at the present. So far, this link in the chain has performed well. LIDO FINANCE is currently the largest ETH validator. Lido finances coin LDO spiked to above 26% before dropping again, indicating that the network is in good shape.
