Ethereum [ETH] Having problem after problem with merging is around the corner now. This time it comes to ETH miners. There is a group of miners who think that moving to Proof of Stake (PoS) could be dangerous for them.
Chandler Joe is one of the miners spearheading the effort to keep the network’s current Proof of Work (PoW) consensus mechanism alive. He believes that miners will collapse after the shift because the “billion dollar industry” will disappear overnight.
Ethereum takes center stage again
Despite what some are saying, the Ethereum Foundation remains bullish on the move. According to the Ethereum Foundation, this approach will reduce blockchain power usage by 99.95%. This could be a step that could make this technology more attractive to companies interested in the environment.
However, Guo told CoinMarketRecap that miners who are “the biggest contributors to this community” are being fired. Guo further stated that he knows critics like him are outnumbered with major crypto companies including OpenSea, Tether and Circle lending their support behind The Merge.
Justin Sun, founder of the Tron ecosystem, believes that Ethereum should continue with the PoW model. CoinMarketRecap told in a podcast that Ethereum is entering uncharted territory. Thus this could turn out to be a disastrous development given how it has become the “core of the cryptocurrency industry.”
However, Sun believes that the merger transition will be technical. He also said,
“We can be 99% sure that this will be a successful launch.”
Where does this leave Ethereum?
According to CoinMarketCap, Ethereum is trading at $1,725 at press time after seeing a slight 1.5% increase in the past 24 hours. This came as good news for investors as they saw ETH break the $1700 resistance once again. The price of Ethereum is now up over 11% over the week.
The Realized Market Value Ratio (MVRV) responded similarly on the chart according to Santiment. When pressed, the MVRV is again in the green.
This means that the trader’s profitability is back after being in the red for the past few weeks.
Despite this, the volume of transactions remained low on the Ethereum network. According to Santiment, the volume currently exceeds 16.62 billion.
This is still a respectable number because Ethereum has the largest ecosystem in the crypto industry. However, volume saw a slight uptick in early September as merger talks gained momentum.