In a conversation with Kitco News this Wednesday, Anthony Di Iorio talked about Ethereum Merge and the differences between Proof-of-Work and Proof-of-Stake. As a highlight, the Ethereum developer was concerned about the centralization of the project. After an auspicious start to the week for ETH which had appreciated 7% since Monday, September 26, fell sharply on Tuesday, from $1,400 to $1,305.
The Ethereum network underwent an update in mid-September 2022. Famously dubbed “the merge,” it involved the transition from the network’s consensus mechanism to “proof of stake.” Many investors believe that this update could signal the beginning of a sustained uptrend in the ETH price. However, two weeks later, the price of the crypto is still falling.
The ETH price rally began on Monday and continued on Tuesday morning, where it briefly managed to break above $1,400, but that level proved to be strong resistance for ETH, which quickly retreated to $1,300.
Ethereum co-founder worries about centralization
For Anthony Di Iorio, the entry of major players acting as validators is a major concern. After all, the convenience of users receiving dividends via such platforms, such as exchanges, may reduce the decentralization of the network.
Going further, he said Ethereum has maintained a different position from Bitcoin over the past seven years. After all, mining graphics cards was more accessible to ordinary people, and ultimately more decentralized, than Bitcoin ASICs.
At the same time, Iorio pointed out that the centralization we’re seeing now doesn’t match Ethereum’s original dream of getting more people involved in the governance of the asset. He noted that if concerns persist, it could impact business and regulatory prospects.
“What you want with decentralized networks are robust nodes; you want a lot, someone who is running a technology that people are using all over the world to participate and help strengthen the ecosystem to get rewarded for that. but it doesn’t help when you only have a few, and it’s becoming more and more centralized,” he added.
ETH price two weeks later!
ETH is showing a price loss of nearly two-thirds since the beginning of the year, with a marked downward trend. The decline of the ETH in 2022 was 64.2% and “the merge” is finally a failure if we look at the ETH price.
The ETH had been affected, like the rest of the markets, in the last two weeks by the August inflation index. Also by the corrective action applied by the U.S. Federal Reserve, which seeks to control inflation through interest rate hikes.
The negative impact of the interest rate hike added to a bearish momentum triggered by the Ethereum meltdown mid-month. ETH posted an appreciation loss of nearly two-thirds over the same period. ETH’s decline in 2022 is 64.2%.
At the time of writing, the price of Ethereum (ETH) is at 1,335 USD, up 0.73% over 24 hours. The ETH crypto currency has a 24-hour trading volume of $14.8 billion, with a market cap of $163.7 billion.