Ethereum blockchain is heading for one of its biggest updates since it came into existence, as it will make the transition from proof-of-stake (PoS) mining consensus from its current proof-of-work (PoW) algorithm, as reported by Cointelegraph. After the Goerli test net integration, the Merge will be taking place on September 15.
On the basis of information by Cointelegraph, Ether (ETH), the native token, was on a rising trend after the Merge date’s announcement in July, with the ETH price reaching a new six-month high of more than $2,000 but couldn’t handle the critical resistance. The rising surge, in terms of token price and market sentiment, seems to be falling with the approaching of the Merge as a certain percentage of ETH wales saw a decline in their cryptocurrency holdings.
According to Cointelegraph, cryptocurrency analytic firm Santiment’s data showed that the gap between Ethereum’s top 10 non-exchange addresses and exchange addresses is decreasing. In the last three months, top whale addresses sent a certain value of ETH onto exchanges as non-exchange addresses saw a 11% fall with exchange-based addresses seeing a 78% rise. Pace of cryptocurrency onto exchanges is regarded as a bearish sentiment, done by traders to take a profit by token sales. Rise in the value of ETH by whale addresses on exchanges showed whales’ expectations for price to fall in the future. Market analysts predict that market prices will go up in the aftermath of the Merge date confirmation but will fall post the event.
Moreover, Cointelegraph noted that the Merge would mean the completion of the second of three phases in Ethereum’s transition to PoS consensus, which began in December, 2020, with the Beacon chain’s unveiling. The third phase is expected to introduce scalability features such as sharding and diminishing blockchain’s energy consumption. Advantages of transaction capacity, lower gas fees, reduction in energy consumption are expected to be available after the third phase completion.
(With insights from Cointelegraph)
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