Merge, the eagerly awaited upgrade to Ethereum’s mainnet, will be soon witnessed by the Ethereum community as well as the whole crypto industry. It’s a transition for the Ethereum mainnet from PoW to PoS consensus mechanism. Because of its popularity, many are offering different views.
In the past weeks, Ether’s price has been boosted by sentiment around the Merge. ETH remained a top-performing token despite slight declines in crypto markets.
Participants are worried about Ethereum’s sudden fall in price. Many people have questions about how Ether has changed since the Merge.
The Merge is also nearing completion of other preparations and upgrades. Investors expect a higher price for ETH.
The Effect of Bellatrix upgrade on Ethereum Network
Recently, the ETH network was witness to the Bellatrix upgrade. It is intended to allow Ethereum validators to make Beacon block. A completed block will include the code to the Merge. As the upgrade to Bellatrix, it is one of those that will initiate the Merge.
The process saw an Ethereum participation drop after the Bellatrix update, according to reports. There was also a rise in missing blocks.
Record shows that missed blocks increased by 17000% after the upgrade. Only a week remains for the Merge. The Ethereum development team will closely monitor the situation.
Professionals offered explanations for why there was a reduction in the number of upgraded nodes. It could have been the inability of certain nodes to upgrade their clients’ computers. The validators would upgrade their nodes in order to keep up with the Bellatrix upgrade, which will result in an increase of participation.
There are many reasons why Ethereum declined
Different reasons are given for Ethereum’s decline. The wider cryptocurrency market is also being affected by some factors. Due to macroeconomic factors, the Ethereum price has fallen.
The wave of the dollar’s rally is throwing almost the entire crypto market and even the general market off balance. It is also expected that the Fed will continue to take a hawkish approach in dealing with inflation.
Cinneamhain Ventures’ partner, and crypto-influencer. Adam Cochran, linked the drop to Aave’s stance on Ethereum markets. The influencer noted that Aave’s halting Ethereum markets triggered other platforms like Instadapp to unwind sETH/ETH pools.
Featured image taken from Pixabay. Chart from TradingView.com