Berlin Damaged Ethereum Network but ETH Rise Will Continue

Berlin Damaged Ethereum Network but ETH Rise Will Continue

Source: Shutterstock

After the Berlin hardfork on the Ethereum network, there was a failure in the synchronization of nodes. Some of the services working with OpenEthereum have become unavailable. ETH dropped 3%.

There are speculations in the community that this failure is malicious and organized by miners. Miners have previously stated that they will oppose the Berlin and London hardforks because they lead to a decrease in miners’ rewards. Suspicions are supported by the fact that the OpenEthereum Mining Pool is formed with the help of these nodes. Some important services such as Etherscan also stopped working as a result of the failure. This caused panic among retail investors for a short time, with the ETH price reacting with a decline.

The Ethereum team has reported quickly that the vulnerability that led to the failure has been found and is being fixed. However, experts note that early after the updates, there were similar failures in the operation of the OpenEthereum nodes (previously Parity-Ethereum). For example, in August last year, it was reported that a critical bug made 13% of nodes unusable. Because of this, the specialists of the Ethereum team were forced to postpone the Berlin hardfork. In mid-September 2020, the vulnerability was fixed, but as it turned out, not completely.

The Berlin and London hardforks are planned milestones in the most important network upgrade. Ethereum creator Vitalik Buterin has made reassuring statements on multiple occasions, stating that there are no stubborn problems in Ethereum 2.0 upgrade. However, experts believe that such large-scale work cannot go absolutely seamlessly. The question is how quickly the Ethereum team is ready to respond to new challenges. The general opinion is that problems are still being resolved quickly enough. The market is reacting by stimulating the rise of ETH, which regularly updates all-time highs. The new ATH is $2,547 and was reached on April 16th.

Generally, analysts are bullish on ETH. Ethereum remains the main platform for launching Decentralized Finance (DeFi). Despite the competition from other platforms, it is the Ethereum blockchain that has created the DeFi market and is trusted by developers. The Berlin and London hardforks strengthen Ethereum’s position in the DeFi market because they reduce network fees. High fees have previously caused projects to move to less expensive platforms such as Binance Smart Chain (BSC) or the Tron blockchain.

ETH also attracts investors by showing a stable rise, without high volatility. Over the year, ETH has grown 14.5 times, from the price of $168 to the current $2,400 – $2,450. Since the beginning of this year, the leading altcoin has more than tripled. Year-end price forecast – at least $5K.