Crypto
Ethereum Plummets Despite Ethereum Merge, What Has Gone Wrong?
Published
1 year agoon
The Ethereum Merge has reached its final phase, and the Bellatrix upgrade went live on the Beacon chain of Ethereum yesterday. The Merge upgrade process will conclude with the Paris upgrade. However, the contrary has happened despite predicting a bullish trend due to the expectations surrounding the Merge upgrade. Ethereum values have tanked by more than 8% and are currently changing hands at $1,510. The price tanking is a cause of massive worry for the community.
The Aftershock Of Bellatrix
The Bellatrix upgrade marks the start of the Ethereum Merge, and it went live yesterday. It enables the validators to replace the miners to create Beacon blocks. The code for the Ethereum Merge is inbuilt in one such block. However, the network participation rate diminished immediately after the Bellatrix upgrade. This is contrary to the belief that participation will surge after the Bellatrix upgrade after the validators upgrade their nodes.
One of the most worrying aspects is the steep surge in the missed blocks rate of Ethereum, which increased by 1700% just after the upgrade. The developer team of Ethereum is closely keeping an eye on the situation since the conclusion of the Merge is just one week away.
Ethereum Merge Cause Of Ethereum Tanking Prices? Other Causes
Well-known crypto influencer and partner at Cinneamhain Ventures, Adam Cochran believes the real problems could lie somewhere else. The first significant cause could be Aave’s decision to temporarily halt Ethereum markets caused platforms like Instadapp to unwind in stETH/ETH pools. He also felt another bout of Ethereum lows might happen due to trade unwinding.
The Fed’s hawkish stand is also one of the causes of Ethereum values falling. The macroeconomic factors are also causing the crypto sector to enter a prolonged bearish phase. The dollar continues its rally leading to a significant rut in the crypto and general markets. The crypto sector is anxiously waiting for the release of the September 13th CPI reveal.