The initial date of the merge, revealed by Ethereum developer Superphiz, is less than two months away and the announcement appears to have triggered a number of developments. First, the network’s native token has seen a massive rise in value and second, Ethereum’s hash rate has fallen by 18.21% since June 30. The data also shows that the number of Ether stored on exchanges has seen a massive drop, as there were approximately 25.13 million Ethers once held on exchanges on July 5, and today there are only 22.77 million worth close to $35 billion.
Data shows that large amounts of Ethereum have been withdrawn from central exchanges
On July 9, 2022, Bitcoin.com News reported a delay in the difficulty bomb and the fact that the merger will be pushed back until at least September. The merger is essentially the upgrade that finally transforms the Ethereum (ETH) network from Proof of Work (PoW) to Proof of Stake (PoS).
There are now two series, one of which still supports PoW, and the Beacon series designed for PoS. On the same day, 130,12469 ETH was reported to be deposited into the ETH 2.0 contract. Since then, 136,416 Ether has been deposited into the contract and there are 410,903 validators.
On July 14, the developer and community manager of the Ethereum Beacon chain, Superphiz, revealed a possible date for The Merge and the timeline indicated that it could happen during the week of September 19. That society should pay attention to official announcements.
Since then, ETH has managed to gain 36.8% against the US dollar in 30 days as Merge boosted the price of the smart contract platform token. Amid the price jump, Ethereum’s hash rate has also declined, dropping below the 1 petahash per second (PH/s) or 1,000 terahash per second (TH/s) region. The computational processing power has since improved, with the hash of the Ethereum network heading towards 1,000 TH/s.
The seven-day stats also show that 2.36 million Ethers have been removed from cryptocurrency exchanges since July 5, according to cryptoquant.com data. Ethereum is following the same trend as Bitcoin (BTC), as crypto assets have been withdrawn from central exchanges in large numbers lately.
Bitcoin.com News reported on July 10 how the number of BTC held on exchanges fell 9.109% less than the stats recorded on May 22. Recent data shows that Ethereum buyers and holders are withdrawing large amounts of Ether from exchanges as well. Data from Chainalysis indicates that “the change in [ethereum] On the exchanges in the last day, 1.82 million [ethereum]The highest level in 365 days.
Fears of merger or bankruptcy?
While the recent withdrawals can be traced back to The Merge, crypto investors have been removing large amounts of money from exchanges due to crypto companies with major financial problems. Over the past few weeks, three major crypto companies have filed for bankruptcy and nearly five or more crypto-asset platforms have halted withdrawals.
– TF (@TF_826) July 15 2022
Individuals who own crypto assets on platforms like Celsius and Voyager Digital for example have seen their accounts frozen. It is possible that the fear of losing money to an insolvent crypto platform has caused a wave of withdrawals never seen before. During the first week of July, Blockfi CEO Zach Prince told the public that while the company was not exposed to the percentage point, when Celsius’ operations were frozen, it caused a “significant increase in customer withdrawals” on the Blockfi platform.
While insolvencies have taken a heavy toll across the entire digital currency economy, crypto veterans have done so. scold newcomers Not to keep their assets in a non-custodial manner. Bankruptcies and bankruptcies have also led to an increase in the number of people tell others The old saying “not your keys, not your coins”.
What do you think of the huge number of Ethereum being removed from centralized exchanges? Do you think withdrawals stem from people anticipating a merger or do you think they stem from people’s fear of leaving money on centralized exchanges? Tell us what you think about it in the comments section below.
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