Ethereum [ETH] Right now we are facing all round problem with merge. This time the issue is with the ETH miners. There is a group among miners who believe that transitioning to Proof of Stake (PoS) could prove dangerous for them.
Chandler Guo is one such miner leading the effort to keep the network’s current proof-of-work (PoW) consensus mechanism alive. He believes miners will be ravaged by the transition as the “multi-billion” industry will disappear overnight.
Ethereum takes center stage again
Regardless of what anyone says, the Ethereum Foundation remains optimistic about the move. According to the Ethereum Foundation, this approach will reduce the energy use of its blockchain by 99.95%. This would be a move that could make this technology more attractive to environmentally conscious businesses.
However, Guo told CoinMarketRecap that miners “the largest shareholder in this community” are being put out of business. Guo goes on to say that he is aware that critics like him outnumber major crypto firms, including OpenC, Tether and Circle, all of whom have lent their support behind The Merge.
Tron Ecosystem founder Justin Sun also believes that Ethereum should continue with the PoW model. He told CoinMarketRecap in a podcast that Ethereum is entering uncharted territory. Thus, this could prove to be a disastrous development, considering how it has become the “foundation of the crypto industry”.
However, Sun believes that the merge transition will technically proceed. he adds,
“We can be 99% sure that this is going to be a successful launch.”
Where does this leave Ethereum?
According to CoinMarketCap, Ethereum was trading at $1,725 at press time, after seeing a slight increase of 1.5% over the past 24 hours. This turned out to be good news for investors as they saw ETH break the $1,700 resistance once again. Ethereum is now up over 11% during the week.
Sentiment-wise, the Market Value Realized Value (MVRV) ratio on the chart has reacted similarly. As of press time, the MVRV ratio is once again in the green zone.
This means that trader profits have come back after being in the red zone for the past few weeks.
Despite this, transaction volume on the Ethereum network remains low. According to Sentiment, the volume currently stands at over 16.62 billion.
This is still a respectable number as Ethereum has the largest ecosystem in the crypto industry. However, early September saw an increase in volumes as merge talks gained momentum.