Ethereum Upgrade Delayed! How is it Affecting ETH’s Market Value?

The delayed Ethereum upgrade is now making investors impatient, which will affect its market value

If you are an avid follower of the cryptocurrency market, you are surely aware of the upcoming Ethereum upgrade. The ETH 2.0 upgrade created a tide of storms in the investors' community who were excited and worried at the same time, regarding their Ethereum investments. The Ethereum developers promised to provide the best possible facilities with modern upgrades in the network. Recently, the software developers of ETH announced that the network's much-anticipated upgrade, 'Merge' will likely be completed a few months after June 2022. Even though the comment helped establish a possible timeline, it also created a frenzy among investors who are now impatient and are losing their trust in the crypto and its developing team. Recently, on April 11, 2022, the network's developers completed a test where they had launched a mainnet shadow fork to stress test the new upcoming software. Analysts and key indicators have revealed that if the crypto fails to deliver this time, and the upgrade is delayed even further, it will now adversely affect the crypto's pricing and market value. 

It is quite obvious that the Ethereum upgrade will likely enhance its market value. The entire crypto industry is excited about the Ethereum upgrade. It will have a positive impact on the investors and attract more investors to the market, making cryptocurrencies mainstream. But currently, the investors are keeping a very keen eye on the long-delayed Ethereum 2.0 which is supposed to make the transactions faster and more secure. It also enables thousands of more transactions to take place every second. But Ethereum's delayed delivery, its existing scalability, and fees issues are making investors speculative about its future prospects. In fact, several angry and disappointed ETH users have said that ETH developers will not be prepared even by the end of the timeline, and it is just another consolation for more delay. 

Ethereum's Much-Anticipated and Delayed Upgrade

Last year, around August 2021, Ethereum activated its much-controversial London hard fork, due to which the prices went up and touched record highs within a matter of 24 hours. A big part of the enthusiasm, among the crypto community, was the fact that it held indications for a sooner Ethereum upgrade and could soon become the largest, overtaking Bitcoin! Even though the developers introduce upgrades on the network almost all the time, the London hard fork was important since it consisted of Ethereum improvement proposals, also abbreviated as EIPs. But the delay in its actual upgrade 'Merge' is something that will make Ether lose its market prominence quite soon. 

The 'Merge' will enable the network to move from proof-of-work to a proof-of-stake consensus mechanism, which will allow the ETH holders and traders to operate as validators to perform certain tasks. Analysts say that the upgrade is so crucial for the ETH holders that they are taking all the time to make sure that the upgrade does not fail. Besides, the 'Merge' upgrade is also supposed to run more efficiently and reduce its carbon footprint, which has off-late become a controversial subject for cryptocurrency critics. 

But the delay has come off as an advantage for the miners. The Ethereum miners who leverage advanced computers like repurposed graphic cards with application-specific integrated chips to secure the network and get subsidies from the ETH blockchain bet that the delay will give them more time to generate profits for themselves for their mining operations. 

How drastically will the delay affect Ethereum's market value?

To answer this question, we have to precisely analyze what the investors and others in the crypto community think. Ethereum has a huge fan base, and this delay in the upgrade will affect their trust in the crypto. This will eventually result in downturns in crypto pricing. The crypto market is solely dependent on investor sentiments and speculations. The sense of a further possible delay, will definitely and adversely affect the Ethereum price. 

Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.