The Ethereum community and the entire crypto space will soon see the launch of Merge, the much-anticipated upgrade. It is the transition of the Ethereum mainnet from the PoW consensus mechanism to the PoS. It has become one of the most exciting events in the industry with many people giving different opinions about it.
Over the past few weeks, sentiment regarding the consolidation has boosted the price of Ether. Despite some minor bearish moves in the broader crypto market, ETH remained one of the tokens with a more impressive performance.
The sudden drop in the price of Ethereum created many concerns for many participants. Many people are confused about the convolution of the aether motion since merging has come in handy.
Furthermore, other preparatory activities and updates that will lead to the merger are almost completed. Hence, investors are anticipating an even bigger increase in the price of ETH.
Impact of Bellatrix Upgrade on the Ethereum Network
The ETH network has recently seen a Bellatrix update. The upgrade aims to enable Ethereum validators to create beacon blocks. One of the completed blocks will contain the merge symbol. The Bellatrix upgrade serves as one of the upgrades that’s starting to roll out.
A report on the operation indicated that Ethereum saw its participation rate in the network decrease after the Bellatrix upgrade. Also, there was a huge spike in missed blocks in the network.
The log showed that the rate of lost blocks after the upgrade increased by 1700%. With only a week to go until the merger process, the Ethereum developer team is expected to keep a close eye on the situation.
Some specialists gave reasons for reducing the upgraded nodes. They stated that some nodes may have failed to upgrade their clients. They stated that increased engagement will come once more auditors upgrade their nodes to coincide with the Bellatrix upgrade.
Possible reasons for the decline of Ethereum
People give different reasons for the price drop of Ethereum. Certain factors also play a side role in the face of the broader crypto market. The price of Ethereum is diminishing due to the influence of macroeconomic factors.
The dollar rally is causing almost the entire cryptocurrency market and even the general market to be thrown out of balance. Also, the Fed’s hawkish approach to tackling inflation is expected to continue.
Partner at Cinneamhain Ventures and crypto influencer, Adam Cochran, linked the decline to Aave’s position in the Ethereum markets. The influencer noted that Aave’s Ethereum market discontinuation has triggered other platforms such as Instadapp to dump SETH/ETH pools.
Featured image from Pixabay, chart from TradingView.com