The world of crypto has exploded over the last few years, with the price of industry leader Bitcoin and many other cryptocurrencies soaring to unfathomable heights before coming back down in the last few months. Experts and analysts have found it difficult, to say the least, to predict how crypto and blockchain technology will develop, both in terms of market value and in terms of technological possibilities.
One of the most famous and established cryptocurrencies, Ethereum (ETH), has recently been going through a revolutionary rebuild, the self-named Merge, and both crypto enthusiasts here at Crowd1 and financial analysts have been eagerly awaiting the new version to see where the crypto establishment is heading.
So what has changed for Ethereum, and what does this mean for the industry at large?
‘The Merge’ explained
Despite being consistently the second-largest cryptocurrency, both in terms of market share and brand awareness, Ethereum decided to upgrade its blockchain with the Beacon Chain, a blockchain that has been running parallel to its own blockchain since 2020. This ‘Merge’ between the two is designed to cut down the environmental impact of crypto and blockchain technology, while also improving network security and allowing developers to introduce features more easily so that Ethereum can keep developing in a crowded market.
‘The Merge’ successfully took place on September 15, 2022, and Ethereum fans rejoiced as the long-awaited upgrade had finally come. Crowd1 Affiliates were excited, wondering what this meant for the future of Ethereum and crypto in general. Would Ethereum begin its takeover and start to challenge Bitcoin for the title of most popular crypto?
Ethereum’s dramatic fall
Unfortunately, the excitement has turned into worry in recent weeks. The price of Ethereum has gone down roughly 20% since ‘The Merge’, and experts are puzzled as to how such an important upgrade could have had such a negative impact on ETH’s market value.
Some theories have been suggested, such as the theory that so many people bought Ethereum in the build up to ‘The Merge’ just to sell afterwards as prices were predicted to rise. This artificial rise in market value wasn’t sustainable, and the theory is that prices are now where they should have been all along.
While this theory seems plausible, it will be a while before we know for sure one way or the other. ETH’s price has stablised in recent days, and while this has been a worrying couple of weeks for Crowd1 Affiliates, we shouldn’t ignore the bigger picture; crypto and blockchain are here to stay.
