Ethereum plunges by 8% after The Merge

Over the past day, the ethereum cryptocurrency has fallen in value by almost 8% after switching to the green blockchain. At the time of writing, ETH is trading at $ 1,472, which is 7.74% less than the same period 24 hours ago.

Despite the significant drop in price, analysts have suggested that Ethereum will be able to gain a foothold above $ 1472 and demonstrate a significant increase in value in the near future. As for ETH’s market capitalization, at the time of writing, it stands at $ 177.2 billion.

Interestingly, Paolo Ardoino, CTO of Tether and Bitfinex, believes that ethereum is still lagging behind bitcoin. According to the CTO of Tether, ETH still lacks a clear positioning, while BTC has long been called digital money. «Bitcoin has long been perceived as a form of money, while Ethereum is stuck between the concepts of money and platform. ETH cannot compete with BTC as a form of money because it still has no limit on the maximum number of coins produced,» Ardoino explained his position.

As a reminder, The Merge took place yesterday at 9:45 am (Kyiv time). According to the ethereum developers, there were no difficulties during the merger. During the upgrade, the main Ethereum network connected to the Beacon Chain, fully switching the cryptocurrency to the Proof-of-Stake consensus algorithm, a faster, more energy-efficient and secure way to scale projects. The Merge will reduce energy consumption by 99% and, according to Buterin, will open up new opportunities for developers.