Ethereum (ETH): Merge Bloodbath Couldn’t Dent These ‘Weak’ Macro Benefits
The leading alt, Ethereum, has lost 25% within the last seven days. Indeed, the highly-hyped Merge tales could not ensure the ‘anticipated’ charm. Though the fundamental shift in emission dynamics, the event led to a ‘sell the news’ case in ETH price. The question remains, from retail to institutional backlash, could things worsen for the 2nd-largest digital token?
Forewarning
Ethereum successfully migrated to the PoS mechanism following years of anticipations, though the $ETH price slogged. Ethereum declined by around 25% within the last seven days. That saw many believing that the anticipated event turned into a ‘buy the rumors, sell the news catalyst.
Was the Ethereum Merge another unique “sell the news” event? The graph screamed yes! Market players purchased ETH after the Merge date announcement early this year and sold the altcoin when the event happened. Thus, enjoying benefits. In comparison, Bitcoin only dropped 5%. Therefore, the broad crypto market correction tale did not hold much for Ethereum.
Moreover, the leading crypto found challenges to recover from the Terra debacle, which massively injured its value. While Ethereum saw upsides in smart contracts since 2020, the Terra collapse of May stopped the growth. By May 9 (when Terra fell), Ether in smart contracts hit 30% peaks in overall percentage.
Meantime, the protocol had its revenue plummeting amidst a cryptocurrency bear market, surged L2s volume, and protocol upgrades for gas efficiency. Moreover, Ethereum’s ‘smart’ contracts supply reiterated similar cases.
All Lost?
Ethereum maintained bearishness during this publication, losing more than 4% within the last day to $1,267.75. Nevertheless, some features stay intact regardless of the situation. First and foremost, an enormous change happened in the daily Ether issuance.
Data indicated that new ETH supply on the marketplace has dropped by more than 90% compared to the figures during the proof-of-work era. Ultrasound data shows ETH issuance plummeted dramatically. That could mean an impressive impact on the price, considering crypto demand persists or soars during the upcoming sessions.
What are your thoughts about Ethereum’s present trajectory since the Merge upgrade? You can share your thoughts in the section below.
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