As a result of Ethereum’s crucial Merge update, large volumes of Ethereum are being moved to centralized exchanges. Among these cryptocurrencies are Binance, Bitfinex. The crypto community is worried about a price drop due to the increased flow of ETH to exchanges. Here are the details…
Binance received 450 thousand, Bitfinex 288 thousand ETH
According to data tweeted by Nansen CEO Alex Svanevik, an account deposited 450,000 ETH worth $720 million on leading cryptocurrency exchange Binance late Wednesday. Crypto exchange Bitfinex, on the other hand, received 288,442 ETH worth $490 million. The cumulative inflow of $1.2 billion marked six-month highs. The total number held in central exchange wallets rose to a two-month high of 25.34 million.
The inflow of money into stock markets often represents an investor’s intention to sell. On the other hand, exits often represent long-term holding intent. A Twitter user said, “The highest stock market entry in 6 months. Thanks for your warning, Svanevik. Again, I say, be careful. Trader and analyst Alex Kruger said that very high entries are lower. However, Hal Press, founder of North Rock Digital, tweeted that the two entries are most likely related to the fork rather than a predetermined sales schedule.
Perhaps the coins were transferred to exchanges to collect Ethereum fork token ETHPOW through a potential airdrop on the exchange. Meanwhile, Hochan Cheung, head of marketing at South Korea-based analytics firm CryptoQuant, said that the coins were moved to derivatives exchanges. This indicates that investors are trying to hedge their positions around the Merge.
The much awaited merge has finally happened
Meanwhile, cryptocoin.com As we have also reported, Merge took place around 09:45 CEST. The price of ETH has not changed much after the energy-saving software update. However, it gained momentum towards $1,700. More than 40,000 live viewers watched the Ethereum Foundation’s live stream during the event. The Ethereum Foundation estimates that the merger with PoS significantly reduces the power consumption of the blockchain by 99.95 percent. Enabling PoS will also reduce the supply of new ETH by 90 percent.
Some advocates claim that this effect is equivalent to three Bitcoin halvings. This means that the number of ETH mined per day will drop from 13,000 to 1,600 per day. Previously, a single transaction in Ethereum was equivalent to a week’s energy consumption of the average US household. Beacon Chain, the core mechanism of the new network, was released in December 2020. This was one of the first milestones leading up to the event. Since then, Ethereum has run both a PoS chain (Beacon Chain) and a proof-of-work (PoW) chain. Now these two are combined.
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