The Ethereum merge, or Ethereum 2.0, is essentially the transition of the Ethereum platform to a proof-of-stake model from its existing energy-intensive proof-of-work system. The crypto giant was seemingly a few weeks away from the upgrade in June, but now the release will be pushed back several months.
The article also covers Ethereum’s lead developer, Tim Beiko, comments about the delay. He states that a postponement was necessary due to a need for more testing. In his tweet, he wrote that there is “No firm date yet, but we’re definitely in the final chapter.”
Ethereum has been plagued with speed-related issues and high processing costs. Under its existing model, it can only handle 30 transactions per second, but after the merge, Ethereum’s developers promise it will go up to 100,000.
Noelle Acheson from Genesis Trading states that funds are rotating into Ethereum in preparation for the transition. She feels that the buying interest will appreciate, and perhaps ETH is trading at a bargain at this point.
Ethereum has had a forgettable beginning to the year in line with its peers in the crypto space. It has shed over 24% of its value since the start of the year. In contrast, ETH had shot up a whopping 276% during the same time last year.
Investors are getting restless with the continual delays in releasing its game-changing update. Despite recent disappointments, its long-term bull case is firmly in place. Nevertheless, these ongoing delays will only delay the recovery in its price.
On the date of publication, Muslim Farooque held a LONG position in Ethereum. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.