Ethereum developers could be on cloud nine as the Merge draws nearer. Nevertheless, some concerns have found their way into the crypto space lately. That has had the ETH community growing skeptical about the much-anticipated Merge.
It Isn’t All Sunshine
Also, Altcoin Buzz disclosed issues associated with the Merge in a recent YouTube video. The first hurdle addresses the stablecoin space as most stablecoins remain locked on ETH smart contract. That threatens stablecoin stability, and you probably know about the Luna crisis, which exposed vulnerability with stablecoins.
Also, Maker Dao highlighted the danger surrounding the Ethereum merge. It revealed that leading stablecoins like USDC and USDT could lose their tie because of negative funding.
Also, the Merge could welcome backwardation in perpetual contracts as futures could trade beneath the spot market price. Furthermore, there’re growing concerns of network downtime or outages during the migration to PoS (proof-of-stake).
Also, the Merge poses risks to the decentralized finance (DeFi) market. As revealed earlier, Aave launched a vote to (momentarily) halt $ETH borrowing. The proposal is about escaping the dangers of high usage because of the Ethereum PoW (proof-of-work) hard fork.
The Ethereum market remains at risk as users might benefit from Ethereum PoW by borrowing $ETH before the coming Merge. Also, Binance revealed about pausing ERC-20 and Ethereum withdrawals and deposits during the transition.
Ethereum Taking a Hit?
Ethereum extends its struggle due to massive bearish challenges within the marketplace. Coinmarketcap data shows the alt hovering at $1,564, following the latest sell-off. Meanwhile, ETH showed resilience within the previous week, gaining 4.27% despite minor losses since September 2.
Moreover, the crypto community trusts a successful transition would uplift Ethereum’s price trajectory. Let us check what the ETH Merge will present amid ongoing bearishness.
Bears have dragged the marketplace lately, with Bitcoin hovering below the crucial $20K mark. While writing these lines, the world’s largest crypto traded at $19,808. Moreover, bears threatened extended downsides.
What are your opinions about the much-anticipated ETH upgrade? Should we cheer the Merge? Feel free to comment in the section below.