Ethereum (ETH) has outperformed bitcoin (BTC) in the past 24 hours after news spread that the latest testnet has passed the necessary stages to migrate Ethereum to the planned proof-of-stake (PoS) system.
The market was excited when Ethereum developer Tim Beiko announced on Tuesday that Kiln, the latest testnet that will combine the existing version of Ethereum with the new PoS system, has gone through the process to complete "Merg".
"Merge" involves merging Ethereum's existing proof-of-work (PoW) blockchain with a beacon chain proof-of-stake system.
However, Beiko later admitted that not everything was going exactly as it should during testing, and said on Twitter, "It looks like there's a client that doesn't consistently generate blocks."
"The network is stable and two-thirds of the validators complete properly. We are investigating the issue."
Four hours later, another Ethereum developer, Marius Van Der Wijden, said the team had looked into a few minor issues and said he had figured out what the problem was.
Commenting on the Ethereum network in terms of value on Wednesday, on-chain analytics platform Santiment said that prices have dropped 35% in the last four months while the network's availability remains stable.
“There is an upward divergence between daily addresses and price, while the number of unique addresses on the Ethereum network remains stable.”
Also, Ethereum-focused blockchain company ConsenSys said yesterday that the Metamask wallet now supports more than 30 million daily active users, up 42% in just four months.
"The global user base on MetaMask is focused on mining and collecting NFTs, participating in DAOs, and engaging in DeFi protocols."
ConsenSys, which is interested in the "convergence" of Ethereum, has received $ 450 million from investors in its Series D funding round. The funding round raises the value of ConsenSys to over $7 billion.
Joe Lubin, founder and CEO of ConsenSys, one of the co-founders of Ethereum, said that this funding round brought both fiat and digital money, and all investments were converted to ETH.
“The next round will be the “ETH Series”, where we will encourage investors to invest entirely in crypto to contribute to ETH, as a symbol of the ongoing paradigm shift and our commitment to it.”
At the same time, Lubin questioned the sustainability of competing projects, including the fast-growing Solana (SOL). According to Lubin, Solana gives huge rewards to users who verify transactions on the network compared to the revenue from those transactions, and it needs to "find a more sustainable business model for the network."