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

Ethereum

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The upcoming Ethereum merge is being considered a big crypto project event. The community sees this as a significant factor in rallying the ETH price in the future. Therefore, as the date of merge, September 15, is approaching, 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 September 2. Similarly, the research firm viewed the number of total addresses at 202,361,298 on August 2. It shows an increase of 2,210,529, meaning that the network added over 70,000 unique wallet addresses daily in the last 30 days.

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

Ethereum Network Records Wide Interaction Ahead Of Merge

Unlike ETH down price actions around that time, miners’ addresses in the network also increased. Because Ethereum miners rush to make ETHs via mining before the highly anticipated merge takes place. Ethereum’s transition to a proof-of-work mechanism via the upgrade will make mining more difficult and unprofitable than before.

The rising number of addresses expresses that crypto-enthusiasts expect price rallies ahead of the merge. At least the depressed market has shown a broader interest in the second-largest cryptocurrency by market and got involved with it at the right time. 

Notably, Ethereum’s price recorded short-term rallies in August following the announcement of the merge came to light. But, the broader market volatility pulled back the price again.

Moreover, a glassnode report on August 30 revealed that the Ethereum network’s wallet addresses in losses had hit a new high in the seven-day moving average at 38,001,366. Given that, ETH price moves to see after the merge becomes more interesting.

Ethereum’s price currently trades at around $1,550. | Source: ETHUSD price chart from TradingView.com

What Analysts Expect After The Upgrade?

Global analysts and industry experts have appeared to offer their opinions on the effect of the much-talked upgrade. Some see the ETH price to achieve higher gains after the merge, while others forecast opposingly.

Founder of the crypto lending platform Nexo, Antoni Trenchev, stated in an interview on August 22 that the Ethereum merge does not guarantee price pumps but still there’s a possibility of high gains. However, he noted that price gains depend upon the initial success of the merge.

Citing the bullish price movements seen following the merge announcement, Trenchev added;

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

Related Reading: Bitcoin Mining Consumes Less Energy Than Gaming, Reveals Report

Alternatively, Arthur Breitman, founder of Ethereum’s competitor Tezos blockchain, expressed that the Ethereum merge will not impact the network as every blockchain has already moved to Proof-of-stake.

Featured image from Pixabay and chart from TradingView.com
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