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The upcoming Ethereum upgrade is considered a major crypto event. The community sees The Merge as an important factor in the future increase in the price of ETH. As the date of September 15 approaches, Ethereum network activity has also increased significantly.
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According to Ethereum blockchain research firm Etherscan, as of September 2, the network has 204,571,827 total wallet addresses. As of August 2, the total number of addresses still stood at 202,361,298. This corresponds to an increase of 2,210,529 addresses. That means the network has been adding more than 70,000 wallet addresses every day for the past 30 days.
However, the number of addresses does not say anything about the number of people who joined the network. The reason for this is that individuals can have two or more wallets that do not remain active at the same time.
The Ethereum network is booming ahead of The Merge
Contrary to the downward movements in the price of ETH at that time, the addresses of the miners on the network also increased. Because Ethereum miners are in a hurry to earn ETH through mining before the long-awaited merger happens. Ethereum’s transition to a proof-of-work mechanism through the upgrade will make mining more difficult and unprofitable than before.
The increase in the number of launches indicates that crypto enthusiasts are expecting a price rally in the run up to the merger. At least, the depressed market showed wider interest in the second largest cryptocurrency by market share and accompanying it at the right time.
In August in particular, the price of Ethereum was able to recover briefly. However, general market volatility pulled the price back down.
In addition, a Glassnode Report, Ethereum network wallet addresses had reached a new high of 38,001,366 on the seven-day moving average. With that in mind, the evolution of ETH price after The Merge becomes more interesting.
What do analysts expect after the upgrade?
Analysts and industry experts around the world have commented on the impact of the much-discussed upgrade. Some see ETH price for higher post-merger gains, while others predict the opposite.
For example, the founder of the crypto lending platform Nexo, Antoni Trenchev, explains in an interview on August 22 that although the Ethereum update is no guarantee of a price increase, the possibility of large profits remains. He notes, however, that gains will depend on the initial success of the merger.
Referring to the increasing price movements observed after the announcement of the merger, Trenchev adds:
“We will have to wait and see, but it really depends on how quickly the new network picks up customers and transactions because then there will be a positive feedback loop where it could go much higher.”
On the other hand, Arthur Breitman, the founder of Ethereum’s rival Tezos blockchain, explains that the Ethereum update will have no impact on the network since all blockchains have already changed to proof-of-stake.
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Text credit: Bitcoinist
Last updated on September 5, 2022
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