Ethereum Fell 11% Today. Is Now the Time to Buy?

The price of native tokens on the Ethereum blockchain fell to $ 1,759.20 this morning as the project co-founder warned that the transition to Proof of Stake could be delayed.

Key Point

• According to CoinMarketCap, Ethereum, the native crypto of the Ethereum blockchain, fell 11% today to $ 1,759.20.
• The Ethereum developer team is working to move the entire system from a proof-of-work consensus method to an environmentally friendly proof-of-stake model. This change is called “Ethereum Merge”.
• This week, Ethereum co-founder Vitalik Buterin said he hopes the merger will be completed in August of this year, but the results of key tests next month could further delay full deployment. I warned that there was sex.

This morning, Ethereum’s native blockchain crypto Ethereum (ETH) fell 11% to a low of $ 1,759.20 per coin on the crypto exchange, down from a 24-hour high of $ 1,978.15 according to crypto tracking website CoinMarketCap. .. This is more than double the dip that the wider crypto space faced at the time of this writing. In addition, 24-hour trading volume increased by 35%, while Bitcoin was 13% and Dogecoin was 17%, indicating an unusually high level of investor interest in ETH.

Price pressure and spikes in volume could be the result of recent chatter from Ethereum co-founders who publicly said that major milestones in crypto projects could be delayed.

Co-founders share conflicting messages on Ethereum Marge

At a developer conference earlier this week, Ethereum co-founder Vitalik Buterin reportedly said he hoped the Ethereum merger would be completed in August of this year. As a context, Ethereum’s team of developers is working to move the entire system from an energy-consuming Proof of Work (PoW) consensus model to an environmentally friendly Proof of Stake (PoS) model. “Etherium Marge.”

It is believed that merging will significantly increase the number of transactions per second that the Ethereum blockchain can handle, while reducing transaction costs and network congestion and reducing settlement times.

In one example, Buterin told the audience at the Shanghai Web 3.0 Developer Summit that an August deployment was likely, but added that it would eventually rely on significant deployment tests scheduled for June 8, 2022. rice field.

“If all goes well, the Ethereum merge will occur in August, but of course there is always the risk of problems and the risk of delays, so September. [2022] It’s possible, and October [2022] Buterin was reportedly said in media reports.

These statements could have caused today’s sold-out, as the long-awaited further delay in the PoS transition is not considered positive for the second-largest cryptocurrency project in terms of market capitalization.

Is it time to buy Ethereum?

Further delays in this critical network upgrade will not improve investor sentiment in the short term, but will have significant long-term benefits for the project. The Ethereum blockchain not only supports the largest number of developer apps in crypto space, but is also the backbone of many popular Metaverse projects, NFTs, and decentralized finance products.

In addition, the supply of Ethereum is in a state of continuous contraction, and the percentage of all newly cast ETH coins is automatically removed from the circulation, making the coin a more deflationary asset. According to WatchTheBurn.com, more than 2.36 million ETH have been burned and net supply reduced by 59.86% since the Ethereum Improvement Proposal (EIP) -1559 was released last August.

This is not financial advice and investors should always do their own research before investing money, but Ethereum is sold at a significant discount of 63% from its peak price in November last year. It is a good cryptocurrency. It’s very well worth considering for investors interested in strong crypto projects that are currently being upgraded for future growth.