According to a new DappRadar report published recently, Ethereum's (ETH) upcoming Merge update could significantly impact the functioning of popular decentralized financial chains. The study focuses on the delays that can occur during the transition of ETH to the Proof of Stake consensus mechanism, commonly known as Merge.

According to the report, the long-awaited "Merge" could slow down transaction times or create headaches for these platforms by creating service disruptions in DeFi lending protocols. According to analysts, this could ultimately devalue stablecoins and shrink DeFi lending pools.

ethereum merge

Pedro Herrera, data analyst at DappRadar, says that Merge's negative impact on Ethereum market supply could affect DeFi liquidity pools even if the transition goes smoothly:

   “If Merge fails to launch successfully, we will experience delays in DeFi protocols that will affect stablecoins. But from a supply dynamics perspective, this may also affect how stablecoins are used for liquidity pools in the DeFi space and beyond.”

The report also stated that DeFi platforms are likely to experience network outages as some Ethereum-based protocols lag behind the ETH chain in their transition to the Proof of Stake consensus mechanism. Herrera continued his statements as follows:

   “There is a risk that Merge will cause technical difficulties such as timestamp synchronization between nodes or other technical issues that prevent Proof of Stake from synchronizing after Merge. It can force production to stop temporarily while running."

eth merge

Coinbase Announces They Will Evaluate Ethereum Forks

Coinbase has announced that if an Ethereum Proof of Work fork emerges after the long-awaited Merge, it will be treated in the same way as other assets on the exchange.

Coinbase; He noted that he will evaluate forks on the Ethereum Blockchain on a case-by-case basis. The exchange had previously announced that it plans to briefly pause deposits and withdrawals of Ethereum and ERC-20 tokens during the Merge, which is expected to take place between September 10 and September 20. The stock market made the following statement on the subject:

   “At Coinbase, our goal is to list every legal and safe-to-list asset, thus creating a level playing field for all new assets created in crypto while continuing to protect our customers.”