Ethereum lost 20% of its market capitalization

Following the mid-September upgrade to The Merge, which included Ethereum’s long-awaited transition to the Proof-of-Stake consensus mechanism, the leading altcoin's capitalization plunged 20%. Ethereum now trades at $1297 and has a capitalization of $156.6 billion.

With the move to The Merge version, blockchain security is ensured by validators rather than miners. Validators are users who have deposited and blocked some of the tokens (staking). Before the transition to the new version, the exchange rate of ETH was actively strengthening, but after the transition it began to decline noticeably.

Since mid-September, not only Ethereum, but the entire cryptocurrency market has fallen in capitalization. Then the value was $1 trillion, now it reaches $966 billion. Informat​ion material from company cryptodefix.