Ethereum Network Attracts Over 70,000 New Addresses In Merge Anticipation

The upcoming Ethereum merger is considered a major crypto project event. The community sees this as a significant factor in the ETH price rally going forward. Therefore, as the merger date approaches September 15, the Ethereum network is attracting a significant increase in activity.

According to data from Ethereum-focused blockchain research firm Etherscan, the network has 204,571,827 total wallet addresses as of Sept. 2. Likewise, the research firm saw the total number of addresses at 202,361,298 on Aug.2. It shows an increase of 2,210,529, which means the network has added over 70,000 unique wallet addresses every day for the past 30 days.

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The number of addresses does not indicate the number of people who have joined the network. This is because individuals may have two or more wallets that do not remain active at the same time.

The Ethereum network records extensive interaction prior to the merger

Unlike ETH’s price-cutting actions during that time, the addresses of miners in the network also increased. Because Ethereum miners are rushing to create ETH via mining before the highly anticipated merger takes place. Ethereum’s transition to a proof-of-work mechanism via the upgrade will make mining more difficult and unprofitable than before.

The growing number of addresses expresses that cryptocurrency enthusiasts are expecting a price hike before the merger. At least the depressed market showed a broader interest in the second largest cryptocurrency by market and got involved in it at the right time.

Notably, the price of Ethereum recorded short-term rises in August following the announcement of the merger. However, the wider market volatility has pushed the price back again.

Also, a glassnode report on Aug.30 it revealed that the losing Ethereum network wallet addresses had reached a new high in the seven-day moving average at 38,001,366. That said, the price of ETH moves to see after the merger becomes more attractive.

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The price of Ethereum is currently trading at around $ 1,550. | Source: ETHUSD price chart from TradingView.com

What do analysts expect after the update?

Global analysts and industry experts appear to be expressing their views on the effect of the much-discussed update. Some see the price of ETH to make higher gains after the merger, while others expect the opposite.

The founder of the cryptocurrency lending platform Nexo, Antoni Trenchev, said in an interview on August 22 that the Ethereum merger does not guarantee price pumps, but there is still the possibility of high earnings. However, he noted that the price increases depend on the initial success of the merger.

Citing the bullish price movements seen after the merger announcement, Trenchev added;

“We will have to wait and see, but it really depends on how quickly the new network collects customers and transactions because it then becomes a positive feedback loop where it could go much higher.”

Related reading: Bitcoin mining consumes less power than gaming, the report reveals

Alternatively, Arthur Breitman, founder of the Ethereum competitor Tezos blockchain, said that the Ethereum merger will have no impact on the network as each blockchain has already moved to Proof-of-stake.

Featured image from Pixabay and chart from TradingView.com

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