Everyone was asking for a change in cryptocurrencies. The way to keep the system safe was a waste of energy that was accelerating climate change. After many attempts The Merge is a reality and this has not prevented the Ether from continuing to fall, why is it?
Ethereum is a cryptocurrency who has triumphed in a world where Bitcoin seemed to be the king. But the advantages of it (faster and equally secure transactions) made it rank 2nd in the crypto market. Now this currency It has undergone a huge change for the better.
After several months of attempts, Ethereum has managed to migrate its system from a Proof of Work protocol to using the Proof of Stake protocol. This, that we are not going to explain now why we already did it, means that 99.95% less energy is consumed than before to keep the network active.
The problem stems from the fact that this change, called The Merge, has not resulted in the cryptocurrency being revalued. If not, it follows the same steps as Bitcoin: it continues to fall.
But although the developers of the fusion promised many changes, a short-term rise in currency valuation was not one of them. The merger did not fix Ethereum’s high fees and congestion.
InsteadThe Merge laid the groundwork for more infrastructure that could solve its problems for years to come. Anyone who expected Ethereum to look or perform completely differently on Thursday was wrong.
Although cryptocurrencies were designed to hold their value independently of the stock market, the two are very intertwined.. In recent years, tokens like Bitcoin and Ether have risen and fallen in correlation with market trends.
This year, Ether prices have been depressed since the Federal Reserve announced its intention to institute a series of aggressive interest rate hikes to combat inflation. High interest rates deter consumers from investing in riskier assets: like cryptocurrencies.
The fault of the fall of the cryptocurrency is the economy
And last Tuesday – two days before the merger – a report from the Consumer Price Index showed that US inflation remains high And will continue to be. And Ethereum, for its part, fell immediately.
For all this, crypto currency experts tell us not to worry. The Merge (or La Fusión, as they say in Spanish) is not to blame for lowering the price of ethereumbut inflation and the current poor economic outlook.