Bloomberg has mentioned that the much anticipated ‘Merge’ by Ethereum could be what turns DeFi TVL around drastically. In the report, market traders and investors are hoping that it could push the entire crypto market back from bearish grounds. As per new data obtained by DeFiLlama, the TVL of the DeFi market has reached a new all-time low, moving close to $100 billion. Bloomberg mentioned that this figure is the lowest that the market has ever seen since last year.
Bloomberg ties market crash to Terra mishap
In the report, the market crash was tied to the recent mishap involving Terra in the last few weeks. Aside from that, there have also been complaints about the rising inflation rate across the US economy. To combat it, the country’s federal reserve has been forced to put specific measures to the detriment of the market to cushion that effect.
The Merge has been the hottest topic across the market owing to the drastic changes that will happen to the network. According to the update by the network, the update is supposed to reduce the total coin supply and eliminate the use of high-end energy during mining. This is because Ethereum is moving its network from a proof of work to a complete proof of stake.
Traders anticipate the Merge
The Merge is also expected to reduce the costs of making transactions on Ethereum drastically. In a statement by the top executive in a crypto firm, the market embraces BTC halving, and they have extended the courtesy to the second coin. Vitalik Buterin has mentioned over the last few weeks that the company is at the latter stages of preparation, with update coming before the end of 2022.
However, one cannot place much hope on that date as the update has encountered a host of issues that have caused a shift in the time. According to the post by Bloomberg, traders believes the new update will trigger price of Ethereum. With the latest update scheduled to occur anytime soon, traders are presently raking up as much Ethereum as they can find in the market. If the new update comes into effect, traders would be tasked with validation, eliminating miners from the network.