Ethereum price has been on a wild roller coaster over the past few years, and it seems like the worst isn’t over yet. According to Yahoo! Finance, a bipartisan bill seeking to regulate DeFi like a bank has been tabled to the US Senate. This bill has a lot of implications for Ethereum because much of what happens on the platform has to do with DeFi, building decentralized exchanges, and creating lending and borrowing protocols.
If it passes, it will automatically affect the entire ecosystem, limiting what users can and can’t do on the Ethereum network in the future. Some positive developments on the network have also impacted the Ethereum price in recent months, such as the Merge. On 22 September 2022, Buterin informed the world via Twitter that Ethereum had finalized the switch from proof of work to proof of stake.
This was made possible by joining Ethereum with the proof of stake blockchain called the Beacon chain in what is now known as the Merge. This merger made the network more secure, faster, and sustainable. Upon completion of the Merge, Ethereum reduced its energy consumption by 99.95%, making it a green blockchain and attracting many climate-conscious investors.
Beyond the sustainability aspect, the greatest achievement of the Merge was what it did for Ethereum’s issuance. Unlike other cryptocurrencies, Ethereum doesn’t have a cap on its supply. This means the number of coins in circulation can double at any time, leading to more demand and lower prices.
Before the Merge, there were about 13,000 ETH minted every day. Today that has dropped to only 1,600 per day, a 90% drop in pre-Merge issuance. Per Ethereum’s roadmap, the platform has 5 more developments in the pipeline aimed at lowering the gas fees, improving
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