This excitement was short-lived because Ethereum's price hasn't been particularly impressive after the merger.
Ethereum has largely traded below the $1,400 barrier level since the merge event and is currently selling at $1,323.52, on top of a growth of 2.53% over the previous 24 hours, according to data from CoinMarketCap.
In a recent interview with Ezra Klein of the New York Times, Ethereum co-founder Vitalik Buterin sought to provide an explanation for this price decline.
“I think the post-merge price drops, I mean, really surprised me. They really surprised everyone. There is an expression, by the rumor, to sell the news. And Ive never really known how seriously that expression should be taken or how often that kind of pattern actually plays out in real life,” When asked what he thought of the price reductions, he responded.
“I guess, the reason why something like that would happen psychologically is that everyone gets very excited and confident running up to an event. But then when the event actually happens, it just feels, in retrospect, almost less significant than what everyone had been expecting going in. And then theres this wave of disappointment, and the price of it ends up dropping a bit.”
According to Vitalik, this is one explanation for the Ethereum coin's present performance, and the general state of the market is the second. According to Vitalik, the financial sector as a whole is under siege, and it is not just having an effect on the crypto ecosystem.
The crypto industry pioneer also noted in the interview how the creators of Terra tried to manipulate the marketplace to keep the consistency of their coin pricing. In his opinion, individuals who have been affected by the protocol when it collapsed in May weren't paying attention to the “Lots of brilliant people were saying, well, this is fundamentally terrible.”
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