Ethereum (ETH) fell 6.78% over the past 24 hours, dropping below the $1,600 mark.
The second largest cryptocurrency with a market cap of $192.73 billion is now changing hands at around $1,575 each.
The current price has dropped 67% from its all-time high of $4,891 recorded in November 2021, according to data from CoinMarketCap.
The bearish movement in Ethereum’s price can be attributed to growing concerns about the future of Ethereum and its miners after the merger. This should take place in September.
“There are many potential risks with the ETH merger,” Evgeny Gaevoy, CEO of Wintermute, tweeted. “Just because people have been working on it for years doesn’t mean it’s going to work perfectly.”
Currently, Ethereum is based on the same consensus model as Bitcoin, which requires “miners” to run non-stop to verify transactions and maintain network security. During the merger, this consensus model will be replaced by a greener version called proof of stake.
This change also means that it will no longer be the miners who will maintain the network, but the validators. Instead of buying machine farms to validate transactions, users can stake 32 Ethereum to become a validator on the upgraded network. Validators get a return for their work, but they can also lose money if they engage in fraudulent behavior.
It is this disaffection for minors that pushes some mining groups to take action.
Antpool, the cryptocurrency mining platform backed by hardware maker Bitmain, invested $10 million in Ethereum Classic, “the original Ethereum,” to protect its post-merger business interests.
Prominent Chinese cryptocurrency miner Chandler Guo has laid out a plan to fork the current Ethereum to continue operating as a proof-of-work blockchain.
Bitcoin slides alongside Ethereum
After Ethereum, leading cryptocurrency Bitcoin (BTC) trades lower, losing 2.46% of its value in the last 24 hours.
Bitcoin is trading at around $22,767, down 66.73% from its all-time high of $68,789 recorded in November 2021, according to data from CoinMarketCap.
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