Stanislav Scharapow is yet to see the importance of Ethereum Merge for investors.
Despite the enticing features associated with Ethereum Merge, Ethereum’s transition from a Proof-of-Work (PoW) model to Proof-of-Stake, investors are yet to enjoy these benefits.
According to a Forbes report today, Stanislav Scharapow, CTO of Portuguese designer Leandro Lopes, said the Merge is yet to usher in any significant changes that will affect how users interact with the network.
“The Merge only affected Ethereum’s price, which makes transactions a bit cheaper in fiat. There are concerns about possible network overtake by big money, but from a user and developer’s point of view, nothing has really changed for us,” Scharapow said.
On the contrary, Nigel Green, CEO of traditional asset management firm deVere Group said news of Ethereum Merge deployment is yet to price in as he thinks the event will eventually become a major catalyst that will boost the token’s price in the future.
Green added that institutional investors will be attracted to Ethereum as energy and transaction costs become lower.
Ethereum’s transition to a PoS algorithm consensus helped lower the network’s transaction and energy costs, as well as bolster transaction speed.
ETH Price Slump After Merge Upgrade
However, the launch of Ethereum Merge has caused a reduction in the price of the cryptocurrency. Following the launch of Ethereum Merge on September 15, the price of the cryptocurrency has slumped nearly 10%, with many investors becoming infuriated with the upgrade.
Before the upgrade went live, the price of ETH traded above $1,500. Unfortunately, ETH price has slumped below the $1,500 level since September 15. At press time, ETH is changing hands at $1,290, according to data from Coingecko.
Investors Blame Ethereum Merge
Although Fed’s efforts to curb rising inflation in the U.S. contributed to the underperformance of several digital currencies, including ETH, some investors still believe Ethereum Merge plays a pivotal role in the asset’s bearish price.
Ethereum’s transition to a Proof-of-Stake algorithm left miners behind. To continue the crypto mining activities, Ethereum miners, led by Chandler Guo, carried out a network fork, which gave birth to EthereumPoW (ETHW). Many investors who prefer the PoW model also followed these miners to the recently forked Ethereum network.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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