Traders say Merge has increased the ether futures market’s sensitivity to staking yields.
Despite the successful execution of Merge earlier on Thursday, September 15, Ether continues to trade in the red, declining 2.71% over the last 24 hours. The second largest cryptocurrency momentarily increased by 3% after the Merge, which saw the Ethereum blockchain successfully switch from proof-of-work to proof-of-stake as its consensus mechanism, but it then resumed its downtrend.
Traders claim that the futures market’s activity will be closely related to staking yields following Merge. The demand for shorting or selling futures increases as the payoff for staking increases, as does the number of stakers. ETH is currently trading at $1432.56.