Once again, the crypto market opened the week on a bearish note as the world’s first cryptocurrency, Bitcoin, went down by more than 7% in the last 24hrs and is trading at around $18,500. This move has also pulled down most of the other cryptocurrencies, including Ethereum.
ETH has lost more than 25% in the last 7 days and more than 10% in the last 24hrs after it tumbled to the $1300 level. The successful merger didn’t seem to impact the Ethereum price, on the contrary, the situation worsened.
Moreover, the ETH/BTC ratio has dropped nearly 15%.
The Impact Of The Ethereum Merge
However, as per VivekVentures, crypto and Ethereum influencer, the present trade setup displayed by Ethereum is just a short-term noise as the Bitcoin proponents are escaping FUD about Ethereum and the merger.
Furthermore, he also claims that issuance around the lead altcoin has plunged by 95% since the time the merge event started, which indicates that the Ethereum network should circulate 95% lesser coins without any security drop-off. Hence, just after 3 days of the merge, there was an issuance of only 3000 tokens but if it was in proof-of-work, Ethereum would have circulated 40,000 currencies.
There is also a difference in selling pressure and the expert asserts that the proof-of-stake has comparatively less selling pressure than proof-of-work. In the PoS mechanism, Ethereum validators are not allowed to sell their block rewards for 6 to 12 months, which is why the current ETH selling pressure is almost zero.
Additionally, Vivek explains that the present gas fee is more than 15 gwei, hence, there is an increase in buying pressure on Ethereum because of the merge’s deflationary effect.
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