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Ethereum exchange holdings rise ahead of merger

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Ethereum exchange holdings rise ahead of merger

The growth of Ethereum and its upcoming merger are topics that are capturing the majority of attention in crypto lately. Prior to the special event, on-chain data recorded an increase in holdings of whale addresses on exchange.

Merge: summary to string

Data from blockchain analytics firm Sentiment showed that the holding gap between non-exchange and exchange addresses had closed.

Over the past 3 months, a number of whale addresses holding a large amount of ETH have sent their holdings to the exchange. This resulted in a scenario where non-exchange wallets fell 11% while exchange-based portfolios increased by 78%.

However, although on-chain data often exhibits some lag in market price reaction, it is also one of the reliable indicators that investors can refer to when making decisions. the best decision for yourself, especially in the rather sensitive Ethereum scenario at the moment.

Considering on-chain indicators could be great preparation for investors and traders, especially when the market is overwhelmed with FOMO.

It may not mean a gathering

Sentiment data shows a relatively large volume of ETH circulating on the exchange, which often reflects negative sentiment and the expectation of a near-term price decline. Therefore, they will sell their holdings, inadvertently creating strong unloading pressure on ETH.

The highly anticipated merger is scheduled for September 15-16. The developer team recently announced that testnet Goerli has been successfully completed – Goerli is the last testnet integration before the major change to the mainnet.

According to CoinMarketCap stats, ETH spiked above $2,000 and then corrected around $1,500 (at the time of writing).

The lower prices could be explained by the general market situation, macro conditions and many more. In addition, Fed Chairman Powell’s last speech yesterday may have contributed to the downfall of global finance.

While the Fed Chairman has underlined the authority’s commitment to lowering the inflation rate, targeting 2%, there is likely a more aggressive move in terms of rate hikes, in order to rein in inflation.

The market quickly reached after the speech with an overall drop in prices. Bitcoin has fallen 4% in the past 24 hours and is currently trading at $20,000.

The euphoria and psychological excitement surrounding ETH’s pre-merger bullishness shows no sign of abating, despite the recent price drop.

A developing story

A number of important developments have recently taken place, such as Bitfinex’s decision to allow users to trade “Ethereum split-chain” tokens, Coinbase’s announcement that it will launch ETH2.0 staking tokens,

Ethereum’s decision to increase the value of its bug bounty rewards by a factor of four, and a variety of opinions regarding the possibility of splitting ETH into two separate chains, namely ETH Proof-of-Work ( ETHW) and ETH Proof-of-Stake (ETHS). These are proof that all interest is fixed on the upgrade.

Earlier this week, exchange Bitfinex announced that it now offers Ethereum Split Chain Token (CST). This token represents two systems connected to The Merge, namely ETH Proof-of-Work (ETHW) and ETH Proof-of-Stake, and it can be acquired through the exchange (ETHS).

These new tokens, which users will be able to trade during the potential fork and which will be available through Bitfinex’s derivatives platform, were issued by Bitfinex.

The Ethereum Foundation announced in a blog post published on April 24 that from August 24 to September 8, all merger-related bounties for finding bugs on the network will be quadrupled.

Meanwhile, Coinbase said it will list Coinbase Wrapped Staked ETH (cbETH) as an ERC-20 token, allowing customers to use Ether (ETH) staking while still earning rewards on the exchange.

To avoid any uncertainty ahead of the merger, the exchange previously announced a halt to ETH and ERC-20 withdrawals and deposits during the merger. Binance also followed suit.

The Ethereum development team has decided on the exact time it will roll out the merger according to the planned schedule, notwithstanding that unforeseen circumstances may arise.

The upgrade to Bellatrix is ​​scheduled for September 6.

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