ETH (Ethereum), the second largest cryptocurrency drops below the $1,500 mark following the successful completion of “The Merge” on Wednesday.
Ethereum founder Vitalik Buterin announced the completion of one of the most anticipated upgrades of the network in a tweet on Sept. 14.
And we finalized!
Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.
— vitalik.eth (@VitalikButerin) September 15, 2022
The Merge is one of the most historic events for the most favored network that has come under scrutiny over using proof-of-work as its consensus mechanism. With the latest upgrade, the blockchain network now shifts to proof-of-stake which is more energy efficient and environmentally friendly compared to mining. Although the recent upgrade will not resolve the long-standing issues of the network which include bloating gas fees and congestion just yet, it will pave the way for the upcoming upgrades on Ethereum. During a live stream call on Thursday, Buterin stated:
“This is the first step in Ethereum’s big journey towards being a very mature system.”
He also added:
“And there are still steps to go – we still have to scale, we still have to fix privacy…, and we all need to work hard and do our part to make those other things happen as well. For me, the merge symbolized the difference between early-stage ethereum and the ethereum we’ve always wanted Ethereum to become.”
Despite the plummeting in its price, the sentiment on the digital asset remains positive. In a report by Forbes, Swell Network CEO and co-founder Daniel Dizon stated:
“Nothing fundamentally has changed for Ethereum. If any, the post-merge ecosystem is now better placed in terms of energy efficiency, decentralization and growth, further entrenching its positioning as the dominant Layer 1 blockchain.”
In a report by Time, Marcus Sotiriou, a market analyst at digital asset broker GlobalBlock also stated:
“Investors are taking note of the ethereum merge due to take place, and is being seen as a promising tailwind by the majority despite the risks.”
ETH (ethereum) just like BTC (bitcoin) and the rest of the digital assets in the crypto market is volatile. Their price movement can be affected by factors like inflation, geopolitical tension, and other events that may affect the market sentiment. On Nov. 10, 2021, ETH (ethereum) almost breached the $5,000 mark and recorded an all-time high but the digital asset has declined by more than 70% from its previous price with its current at $1,440.87 in data by Crypto.co.
But despite this, “The Merge” will definitely play a very important role in the realization of Web 3.0 in the crypto space. Crypto investors remain bullish over the ETH (ethereum) with some even predicting that its price could even reach $12,000 this year.