It seems that becoming a green cryptocurrency has not been enough to attract investors. At least for now.
On September 15, there was The Merge either the Ethereum Meltdownand the owners of the cryptocurrency they expected that this would lead to a rise in the price. So far, this has not been the case. On the contrary since the Merger the price of Ethereum has fallen by 17%.
The Fusion or The Merge has been called a change in the string either ethereum blockchainwhich has gone from operating under the Proof of Work protocol to use the Proof-of-Stake protocol.
What this means is that crypto Ethereum no longer needs cryptocurrency miningbecause the creation of new tokens or the management of operations in the ethereum network It no longer works with Proof of Work (calculation power), but with Proof of Participation or Bet, where more tokens are obtained by those who have more coins, or who participate in the ethereum network.
With this DNA change, from now on Ethereum reduces its energy consumption by 99%. A brutal change, considering that until a week ago, managing the Ethereum network consumed the same as entire countries such as Chile, Israel or Ireland.
In return, the Ethereum network is technically a bit less securebut other cryptos like Solana have been using Proof of Stake for years, and have had no security issues.
With this DNA change, Ethereum gets rid of a heavy burden: that of being a crypto that wastes energy and is an attack on the environment for the benefit of a few, as is the case with Bitcoin.
Many cryptocurrency holders Ether fingers crossed for this change to reverse the trend and attract investors again, driving up the price of Ethereum again. Five days later… that change has not occurred. On the contrary. Since the Merger, Ether has fallen by 17%although today it has recovered a bit:
and with it has dragged Bitcoin, which lost almost 10% in 5 days until yesterdayalthough today he has recovered half.
What Explain expert Matthew Hyland, the price of Ether is linked to the activity of the Ethereum network, and in 2022 this activity has plummeted. That Ethereum is now a eco friendly crypto it doesn’t change the network activity, that’s why the price keeps falling.
The lesson to be learned is that investors care little about climate change or energy waste. They only care about making money. Merger or no Merger, until cryptos become attractive, complicated by the Invasion of Ukraine and inflation, their price will not take off again.
Even so the great step of Ethereum is very important so that society does not see cryptocurrencies as an enemy that wastes energy and favors climate change, for the benefit of a few.