Why has Ethereum (ETH) underperformed, and what is the likely next step? After years of planning, the blockchain has completed its transition to proof-of-stake (PoS).The crypto market eagerly anticipated the transition, hoping that it would improve the transition.
However, investors have been underwhelmed by ETH's post-Merge performance so far. This suggests that the Merge may not be the bullish catalyst that most investors expected it to be.During its buildup phase, the Merge generated much interest, particularly among investors who believed that the Ethereum blockchain would see even more adoption, boosting the ETH price.Unfortunately, things have not gone as planned.
The price of ETH has dropped by 15.40% since the Merge.The issue appears to be that the entire crypto market is trading down.
And the reason for this downturn is simple: inflation. Last week, the Federal Reserve released Consumer Price Index (CPI) data, revealing that inflation for August 2022 was 0.1% month-over-month.Core inflation was also 0.6% month-over-month, with year-to-date inflation now at 8.3%.Read more on cryptonews.com