The Ethereum (ETH) network has witnessed a sharp jump in overall activity over the past few days amid the latest stage of its much-anticipated network upgrade. On 15 September 2022, the Ethereum Merge went live when Vitalik Buterin, the co-founder of ETH, confirmed the development in a Tweet.
In the middle of the network update, the total ETH balance on prominent exchanges reached 21.96 million for the first time since April 2022. Additionally, address activity across the network jumped recently as idle Ethereum supply touched its lowest level in a month on September 15th.
yesterday, Financial Tycoons reported a sharp increase in whale ETH addresses. According to Glassnode, 1,199 addresses now contain at least 10,000 coins. The company noted that the number of Ethereum addresses with at least 1,000 coins reached 6,535 on Thursday, which is the highest level in about 16 months.
However, despite the growing retail activity, the institutional flows related to Ethereum investment products remained negative. A recent report from CoinShares indicates that Ethereum products witnessed outflows worth $61.6 million last week.
The ETH Meltdown
Simon Peters, the Market Analyst at eToro, believes that the Merger will have a significant impact on the crypto ecosystem.
“According to the ‘tokenomics’ of ETH, the merger and the PoS change could be positive for the price of ETH for several reasons. First, the emission – the amount if new ETH entering circulation – will decrease significantly, with estimates currently around 90% fall. Second, a minimum fee must be paid to the network to carry out transactions. This fee will be “burned” during the process, removing it from circulation. The burning of ETH from circulation will leave less of the crypto asset circulating in the system with the time,” Peters said.
“Third, owners can start palim, a form of passive reward to help secure the network. Again, this will take ETH out of the circulating supply,” the eToro Market Analyst emphasized.
The Ethereum (ETH) network has witnessed a sharp jump in overall activity over the past few days amid the latest stage of its much-anticipated network upgrade. On 15 September 2022, the Ethereum Merge went live when Vitalik Buterin, the co-founder of ETH, confirmed the development in a Tweet.
In the middle of the network update, the total ETH balance on prominent exchanges reached 21.96 million for the first time since April 2022. Additionally, address activity across the network jumped recently as idle Ethereum supply touched its lowest level in a month on September 15th.
yesterday, Financial Tycoons reported a sharp increase in whale ETH addresses. According to Glassnode, 1,199 addresses now contain at least 10,000 coins. The company noted that the number of Ethereum addresses with at least 1,000 coins reached 6,535 on Thursday, which is the highest level in about 16 months.
However, despite the growing retail activity, the institutional flows related to Ethereum investment products remained negative. A recent report from CoinShares indicates that Ethereum products witnessed outflows worth $61.6 million last week.
The ETH Meltdown
Simon Peters, the Market Analyst at eToro, believes that the Merger will have a significant impact on the crypto ecosystem.
“According to the ‘tokenomics’ of ETH, the merger and the PoS change could be positive for the price of ETH for several reasons. First, the emission – the amount if new ETH entering circulation – will decrease significantly, with estimates currently around 90% fall. Second, a minimum fee must be paid to the network to carry out transactions. This fee will be “burned” during the process, removing it from circulation. The burning of ETH from circulation will leave less of the crypto asset circulating in the system with the time,” Peters said.
“Third, owners can start palim, a form of passive reward to help secure the network. Again, this will take ETH out of the circulating supply,” the eToro Market Analyst emphasized.
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