Ethereum (ETH) is down 6.78% in the past 24 hours, to below $1,600.
The second largest cryptocurrency with a market cap of $192.73 billion is currently changing hands at around $1,575 each.
The current trading price is down 67% from the all-time high of $4,891 recorded in November 2021, according to data from CoinMarketCap.
Ethereum’s declining price movement can be attributed to growing concerns about the future of Ethereum and its miners that follow. consolidation. The event is expected to happen in September.
“There are a lot of potential risks with ETH consolidation,” tweeted Evgeny Gaevoy, CEO of Wintermute. “The fact that people have been working on it for years doesn’t mean it will work perfectly.”
Currently, Ethereum leverages a consensus model similar to Bitcoin, which requires miners to run non-stop to verify transactions and maintain the security of the network. The merge event will move from this consensus model to another greener version Is called proof of stake.
This change also means that miners will no longer maintain the network but validators. Instead of buying machine farms to validate transactions, users can stake 32 Ethereum to become validators on the upgraded network. Validators make a profit for their work, but can also lose money if they commit fraud.
It’s outnumbered miners who have several mining pools making the move.
Antpool, a cryptocurrency mining platform backed by hardware manufacturer Bitmain, has invested $10 million in Ethereum Classic“Original Ethereum”, to protect their business interests after the merger.