Ethereum, the world’s second most valuable cryptocurrency continues on a downward slope today, as holders fretted about the repeated delays to a major change that aims to make it more scalable.
The recent tank can be attributed to the anticipation of the so-called “Merge,” a planned transition to a ‘proof-of-stake’ system which has been delayed until August. The Chief Architect of the Ethereum network, Vitalik Buterin had told a conference in Shanghai last week that the transition is set to cut down energy levels which has been a key obstacle to processing larger transaction volumes.
The value of the cryptocurrency went significantly bearish to a 14-month low of $1,717.66. It is the second time in the month that it has fallen below $1800.
Cryptocurrencies, in general, have been under pressure from the rising interest rate trend in the U.S. Other alternative coins have also mirrored the movement of Ethereum with Cardano and Solana dropping by an average of 16%. Even Bitcoin is now trading at its lowest since December 2020.
According to a report by Time, experts are attributing the general slump in prices to the “heightened volatility that comes with war, continued surging inflation, and shifting U.S. monetary policy. Experts also point to other factors like the crypto market tracking the stock market, more mainstream adoption, and slumping prices in recent months as contributing to what we’re seeing with crypto prices right now”