The penciled tentative date for the merger, revealed by Ethereum developer Superphiz, is less than two months away, and the announcement appears to have set off a series of events. Firstly, the native Ethereum token on the network has grown significantly in price, and secondly, since June 30, the Ethereum hashrate has fallen by 18.21%. once held on the exchanges on July 5, and today there are only 22.77 million worth about $35 billion.
Data shows a significant amount of Ethereum has been withdrawn from centralized exchanges
July 9, 2022 Bitcoin.com News reported the delay difficulty bomb and the fact that merger will be delayed until at least September. A merge is basically an update that is finally Ethereum (ETH) network from proof of work (PoW) to proof of stake (PoS).
There are currently two chains, one of which is still using PoW and the Beacon chain is for PoS. On the same day, it was reported that 13,012,469 Ethereum was deposited in Ethereum 2.0 contract. Since then, 136 416 ethers was included in the contract and there are 410,903 validators.
On July 14, software developer and community director of the Ethereum Beacon network, Superphiz, announced a possible date for the merger, with the chart noting that it could happen within the week of September 19. The developer, however, emphasized that the date is not final and that the community should pay attention to official announcements.
Since then, Ethereum managed to gain 36.8% against the US dollar in 30 days as the merger strengthened the smart contract platform tokens. price. Amid the price surge, Ethereum’s hash rate also fell, dropping below 1 petahash per second (PH/s) or 1,000 terahash per second (TH/s). Since then, computing power has increased as the hashrate of the Ethereum network climbing along at 1000 Tx/s.
Seven-day statistics also show that 2.36 million Ether has been removed from cryptocurrency exchanges since July 5. cryptoquant.com data. Ethereum follows the same trend as bitcoin (BTC)since recently both crypto assets have been withdrawn from centralized exchanges in large numbers.
Bitcoin.com news reported on July 10 as the number BTC on the stock exchanges fell by 9.109% below the statistics recorded on May 22. Recent data shows that Ethereum buyers and holders are also moving large amounts of Ether off exchanges. Data from Chainalysis indicates that “the change in [ethereum] conducted on the exchanges for the last day is 1.82 million. [ethereum]highest level in over 365 days.”
Merger or bankruptcy?
While the most recent seizures can be attributed to merger, crypto investors withdrew large amounts of funds from exchanges due to serious financial problems of crypto companies. Over the past few weeks, three major crypto firms have filed for bankruptcy and roughly five or more crypto asset platforms have suspended withdrawals.
— TF (@TF_826) July 15, 2022
For example, the accounts of individuals who held crypto assets on platforms such as Celsius and Voyager Digital have been frozen. The fear of losing funds due to an insolvent crypto platform likely triggered an unprecedented wave of withdrawals. During the first week of July, Blockfi CEO Zak Prince told the public that while the company was not exposed to Celsius when Celsius froze operations, it caused a significant “splash in customer withdrawals” on the Blockfi platform.
While the insolvency has resulted in significant losses throughout the digital currency economy, cryptocurrency veterans scolded newcomers for not holding their assets in a non-custodial manner. Insolvency and bankruptcies also caused a surge in people tell others the saying “not your keys, not your coins”.
What do you think about removing the massive amount of ethereum from centralized exchanges? Do you think the withdrawal is because people are anticipating the merger, or do you think it’s because people are afraid to leave funds on centralized exchanges? Let us know what you think about it in the comments section below.
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Credit : news.bitcoin.com