Author: @madridbg, through Power Point 2010, using public domain images. Art Rachen
Greetings and welcome dear readers of this prestigious platform and especially to all those users who share material of economic excellence, associated with decentralized finance, cryptocurrencies and blockchain in general from the spaces of #Leofinance.
In this sense, through these lines of writings we will be reflexively addressing some aspects associated with the cryptocurrency economy subsequent to the arrival and completion of Ethereum's MERGE.
Therefore, it is necessary to take into account that the upgrade in this blockchain was expected for a long time, since it would come to improve aspects such as data scalability, security and the decrease in the cost of transactions, among other aspects that we have discussed above, so we must be aware that in general terms, moving from proof of work to proof of participation leaves aside in a certain way the work of the miners and consequently the network would become much more stable and faster.
Likewise, assume that during the wait there were many uncertainties related to a possible fork that would destabilize the project in question, however, the reality has been different, since the Merge has been executed with total success without presenting any problems at all.
It is also worth mentioning that many investors bet on an imminent rise of ETH with the arrival of the update, an aspect that we do not see reflected in the price, which may be a product of the bearish scenario we are living and where medium-term projections tell us that Bitcoin can reach the figure of 9k, which will undoubtedly impact the rest of the cryptoassets.
Based on the above, we can see that the price of Ethereum is much more bearish with the long-awaited arrival of the Merge, so despite ending successfully, it did not present any short-term reaction on the price of the asset, which has broken the hopes and illusions of many investors who have decided to buy on the rumor and sell on the news.
If we go into context we will realize that the capitalization of ETH exceeds that of BTC in fall, since the first one registers 123 million in settlements while the second one only 33 million and this has been consubstantiating with the inflationary issue in the United States, which in a certain way has set off the alarms of investors and they have decided to move away from high-risk assets, both at the stock market and cryptocurrency level, generating a disparity between supply and demand that has caused the prices of both to fall.
Therefore, we can infer that the arrival and completion of the Ethereum Merge has not generated the desired impact, as a result of the alarming economic scenarios that we are experiencing at the macro level and that are having a negative impact on the different economies of the planet.
OF INTEREST
Hello @madridbg
The market has reacted downward since the ETH merger unfolded, some experts claim that the update destabilized the price action of the entire cryptocurrency market, to the point that at the time of writing this comment the Bitcoin price had plummeted to the $18,000 area.
Best regards, be well.