While the Merger was expected to boost investor confidence, it happened at the worst possible time.
The merger took place at an interesting point in crypto history. The update took place on September 15, just two days after the CPI data was made public in the United States.
There was a widespread sell-off in the stock markets due to the Federal Reserve’s rate hike, which reported the annual inflation increase of 0.1% and impacted the cryptocurrency market.
On the day of publication, Bitcoin was down 12.71 percent and Ethereum down 12.67 percent. The timing of the launch of the Merger was a last-ditch effort to maintain or perhaps boost investor confidence. However, that didn’t really happen.
Ethereum (ETH) price down 21%
When all was said and done, the price of the Ether had fallen by 21.1% compared to the 7-day moving average, as measured by CoinGecko. But @CryptoGucci, a Twitter user, disputes this.
A Twitter user explained why the recent price drop shouldn’t be alarming. The increasing prevalence of Ethereum validators on the blockchain is a prime example.
This increase in validators can improve the overall efficiency of the Ethereum blockchain.
In addition, the state of Colorado has accepted ETH as a payment method through PayPal. However, this payment method is exclusively for personal PayPal accounts and not for commercial ones. Nevertheless, this will undoubtedly help the adoption of the ETH ecosystem.