Top 5 cryptocurrencies that increased and decreased their price due to the merge

The definitive elimination of Ethereum mining generated the greatest expectation regarding the migration of miners to the ETH network, to the point that the cryptocurrency market was expected to have an upward behavior that would undoubtedly benefit all investors.

For the cryptocurrency market, changing the downward trend has not been easy; even during the introduction of The Merge; the expected objectives were not met. You can click here to visit site.

Financial analysts assume that The Merge could be one of the many factors that could cause the digital financial market to behave bullishly, only that more relevant factors, such as inflation and the increase in interest rates have undoubtedly made the market move.

Impact of The Merge on the crypto market

Ethereum in its constant search to make the process of creating and issuing digital currencies much more efficient, designs a project that ends mining this digital asset known as The Merge.

The biggest expectation of investors was a price rise that would contribute to the end of the crypto winter; unfortunately, this did not happen.

Although a set of cryptocurrencies increased their value in the short term, they decreased significantly. For the global crypto market, the expected effects did not occur.

It is important to note that from the point of view of Ethereum, which is the digital currency that is directly involved with The Merge and four cryptocurrencies that are directly involved with Ethereum mining, such as Ethereum Classic ( ETC ), Flux ( ZEL ), Ergo ( ERG) and Ravencoin ( RVN ), did not achieve the expected rise.

Before the Ethereum mining update, a slight increase in the price of digital financial instruments was generated. Still, the unexpected drop came once the update was executed.

The increases were 10%, not covered by the demand rate pre-established after The Merge's implementation.

Depreciation of crypto assets

Cryptocurrencies have remained a kind of hurricane of opinions from the moment of their creation. Some assume they should be considered safeguard assets in the face of the diverse economic situations that usually occur and primarily affect people.

On the other hand, there is the position where they are considered a high-risk asset for people who do not know about the digital financial market, dismissing the possibility that these could be value-protected financial assets.

2021 was considered the most relevant in positioning and support by large companies for the digital financial market. Bitcoin undoubtedly reached historical highs that led many to believe it is a financial instrument that should be in anyone's investment portfolio.

Tesla, Grayscale, Bill Miller, Paul Jones, and the Bank of Spain, among many other companies and individuals, decided to invest in cryptocurrencies giving them the support that even many are considered a risk.

The depreciation or loss of value in the case of crypto assets is directly linked to their supply and demand. Therefore, it is only the responsibility of their users and investors.

That is why cryptocurrencies can acquire a high value at a particular moment. However, there will always be a risk that the market will suffer falls. Sometimes, they will lose weight drastically until they reach zero.

Five cryptocurrencies in decline

With the entry into force of The Merge update, some cryptocurrencies increased their price. This scenario was expected to occur, only that they later entered a free fall.

The cryptocurrencies that were affected after this event have been Lido DAO ( LDO ), Ravencoin ( RVN ), Ethereum Classic ( ETC ), and Ergo (ERG), which during August and September maintained an upward trend pending the migration effects of the ETH mining process.

Unfortunately, during the last few days, they showed a behavior opposite to what was expected, touching levels of almost 20% less than their initial value, which undoubtedly affected their market capitalization.

Their fall has been so resounding that they have touched the value they had perhaps a little more than three months ago; this represents more than a 200% decrease.

Conclusion

The crypto market has been under pressure throughout 2022, enduring the effect of macroeconomic factors affecting the economy of the United States and Europe; it is noteworthy that the stock market has also been subject to many ups and downs, all will depend on the economic evolution of these world powers.