The price of cryptocurrency Ethereum (ETH) has declined 15% in the week since it was successfully upgraded to a more energy efficient proof-of-stake operating protocol.
Known in cryptocurrency sectors as “the Merge,” the upgrade changed the validation mechanism for Ethereum transactions from an energy intensive proof-of-work method to the new proof-of-stake protocol.
Advocates had expected that the upgrade would serve as a catalyst for Ethereum and spark a rally in its price.
However, since the Merge was successfully completed on September 15, Ethereum’s price has dropped more than Bitcoin (BTC), which remains the biggest digital asset by market capitalization.
Since the upgrade, Ethereum’s price has fallen 15% while Bitcoin’s price has declined 3%.
In the months before the network upgrade, the price of Ethereum had doubled, far outpacing Bitcoin.
Proponents of Ethereum are attributing the price slump to the fact that the network upgrade was already priced in for Ethereum.
Additionally, cryptocurrency traders are moving investments from Ethereum and other alternative digital coins back into Bitcoin as stock markets continue to selloff amid rising interest rates.
Comments last week by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler have also spooked many cryptocurrency investors.
Gensler said in recent days that cryptocurrencies that work on the proof-of-stake operating model, such as Ethereum, may end up being classified as a security and regulated going forward.
Ethereum’s price is down 64% on the year and currently trading at about $1,350.00 U.S.
