The Ethereum community and the entire crypto space will soon witness the long-awaited upgrade integration. It is a transition from PoW to PoS consensus mechanism for Ethereum mainnet. It has become one of the most popular events in the industry as many people are giving different opinions about it.
Over the past few weeks, sentiment over the merger has boosted the price of Ether. Despite some downward movement in the broader crypto market, ETH has been one of the more impressively performing tokens.
The sudden drop in the price of Ethereum is creating many concerns for many participants. Many people are confused about the spiral in ether movement because the merger is so close.
In addition, other preparatory work and improvements that will bring about the merger are nearing completion. Therefore, investors are expecting further increase in the price of ETH.
The result of the Bellatrix update on the Ethereum network
The ETH network recently saw a Bellatrix upgrade. The update is intended to allow Ethereum validators to generate beacon blocks. One of the completed blocks contains the integration code. Bellatrix’s upgrade serves as one of the upgrades that kicks off the merger.
A report on the process noted that Ethereum saw a decrease in network participation after the Bellatrix upgrade. Also, there was an increase in missed blocks in the network.
According to the report, the number of missed blocks increased by 1700% after the update. With just over a week to go before the merger, the Ethereum developer team is expected to monitor the situation closely.
Some experts have proposed reasons for reducing the modified knots. They mentioned that it might be the failure of some nodes to improve their clients. Participation increased once more validators announced that they would upgrade their nodes to match Bellatrix’s upgrade.
Possible reasons for Ethereum’s failure
People are coming up with different reasons for the drop in Ethereum price. Some factors are playing out against the broader crypto market. Due to the influence of macroeconomic factors, the price of Ethereum is decreasing.
The wave of the dollar rally is throwing the entire crypto market off balance and even the entire market. Also, the Fed’s hawkish approach to curb inflation is expected to continue.
By Cinneamhain Ventures and crypto influencer partner, Adam Cochrane, linked the drop to Aave’s position on Ethereum markets. The influencer pointed out that AV’s shutdown of the Ethereum markets has prompted other platforms like Instadapp to open sETH/ETH pools.
Featured image from Pixabay, chart from TradingView.com