Ethereum’s ongoing price plunge can be a result of this ‘ghost from ETH’s past’

of Ethereum [ETH] the supply in circulation has significantly decreased since the long-awaited merger. According to data from Ultra Sound Money, the supply of the major altcoin has increased by just 5,000 and an annualized inflation rate of 0.19% since September 15.

Data from the same source revealed that if a PoW consensus mechanism still powered ETH, its supply within it would be up to 98,000. Furthermore, its inflation rate would be pegged at 3.78% during the same period. After the merger, the network gave up on the need for miners to validate transactions on the network and the rewards paid to them.

Many believed that with the pre-Merge ETH locked up until the Shanghai update and the drop in miner premiums, the post-Merge ETH would see a decrease in sales pressure. This, however, was not the case. Since September 15, the price for ETH has dropped 23%, CoinMarketCap data revealed.

Hold miners accountable

According to IntoTheBlock results In a new report, while the continued decline in the price of the alt leader is partly due to a corresponding decline in the broader cryptocurrency market, “miners may also be partly responsible for the recent increase in selling pressure and decreasing prices. prices “.

IntoTheBlock found that the miners’ reserves on Ethereum had continuously decreased prior to the merger. Since the September 15 merger, mining reserves on the Ethereum mainnet have fallen by 16%, from $ 124 million to $ 92 million. According to the report, this decline indicated miner sales of 17,000 ETH from the merger.

Source: IntoTheBlock

A look at the Miners Netflow on Ethereum’s core network has also revealed some significant ETH sales over the past three months. These sales contributed to the continued decline in the price of the main alt. According to IntoTheBlock, in the past three months, there have been two distinct periods in which the amount of ETH that has left the miners’ addresses has exceeded the ETH sent to them.

The first sale took place on September 4 and stood at a total of $ 18 million. The second amounted to $ 16 million and occurred on the day of the merger. At press time, Miners Netflow posted a negative value indicating that ETH continued to leave miner addresses, especially as former miners on the Ethereum Network were looking for new homes.

Source: IntoTheBlock

According to IntoTheBlock, after the merger, it is not surprising that mining activity on the Ethereum mainnet has declined significantly. As of September 21, this stood at a mere 0.1%.

Interestingly, although the miners no longer have any purpose on the Ethereum network, they control a huge amount of ETH in their reserves, IntoTheBlock data revealed. At press time, this number was $ 84.95 million.

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