The Merge’s penciled-in preliminary date, revealed by Ethereum developer Superphiz, is less than two months away, and it seems that many developments have occurred with this announcement A number of developments seem to have occurred as a result of this announcement. First, the value of the network’s native token, ether, increased significantly, followed by an 18.21% drop in ethereum’s hash rate since June 30. Data also shows that the number of Ethereums stored on the exchanges has dropped significantly, with roughly 25.13 million Ethereums once stored on the exchanges on July 5, but now only 22.77 million, equivalent to nearly $35 billion.
Data show that a significant amount of ethereum is being withdrawn from centralized exchanges
On July 9, 2022, Bitcoin.com News reported on the delayeddifficulty bomband the fact thatThe Mergewill be delayed until at least September. The Merge is basically the final transition of theEthereum (ETH) network from Proof of Work (PoW) to Proof of Stake (PoS).
There are now two chains, one that still leverages PoW and a Beacon chain designed for PoS. Since then,136,416 etherhave been deposited into the contract, with 410,903 validators.
On July 14, software developer and Ethereum Beacon Chain Community Director, Superphiz, revealed a possible date for The Merge, noting that the timeline suggests it could take place the week of September 19. However, the developer stressed that this date is not final and that the community should pay attention to the official announcement.
Since then,ETHhas managed to rise 36.8% against the USD in 30 days as The Merge strengthened theprice of the smart contract platform token. Amid the price increase, Ethereum’s hash rate also dropped, slipping below the realm of 1 peta hash per second (PH/s) or 1,000 tera hash per second (TH/s). Since then, computational throughput has improved, with the Ethereum network hash rate coastingat 1,000 TH/s.
Seven-day statistics further show that2.36 million Ethers have been removed from cryptocurrency exchanges since July 5, according todata from cryptoquant.com. Ethereum is following the same trend asBitcoin (BTC). as both crypto assets have recently been pulled from so many centralized exchanges.
Bitcoin.com News reported on July 10 how manyare held on exchanges. The number of BTCheld on exchanges was 9.109% lower than the statistic recorded on May 22. Recent data shows that Ethereum buyers and holders alike are withdrawing large amounts of Ether from the exchanges. Datafrom Chainalysis shows that “the change in [ethereum] held on exchanges in the last day is 1.82M [ethereum], the highest level in over 365 days.” indicates.
fears of mergers and bankruptcies.
The most recent withdrawal may be attributed toThe Merge. Crypto investors have been removing large amounts of money from exchanges for crypto companies with major financial problems. In the past few weeks, three major crypto companies have filed for bankruptcy and roughly five more crypto asset platforms have stopped withdrawals.
#Celsius: Not your key, not your coin 😂 pic.twitter.com/BFRiYF0oOf
– tf (@tf_826)
July 15, 2022
Individuals who held crypto assets on platforms such as Celsius and Voyager Digital, for example, saw their accounts frozen. The fear of losing money to insolvent crypto platforms probably triggered a wave of withdrawals like the previous one: in the first week of July, Blockfi CEO Zac Prince said that while the company had no exposure to Celsius, Celsius had frozen its operations publicly disclosed that when it did, it caused a significant “rise in client withdrawals” on the Blockfi platform.
While the bankruptcy has caused significant losses throughout the digital currency economy, crypto veterans are scolding newcomerswho do not hold their assets in a non-protective manner. Also, insolvency and bankruptcy have begun to increase the number of peoplewho tell othersthe adage, “It’s not the key, it’s not the coin.”
What do you think about the huge number of ethereums being removed from centralized exchanges? Do you think the withdrawals are due to people anticipating the merge or do you think it is due to people being afraid to leave their funds on centralized exchanges? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
