As “The Merge” approaches, ETH whales and investors are buying the dip

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Ethereum has just entered the tenth week of consecutive price drops, as red blankets the entire cryptocurrency market.

Despite the price drops, data from data science startup IntoTheBlock revealed that Ethereum whales and investors see the current situation as a great time to buy.

Someone is Buying the Dip

Over the last month, the balance of Ether addresses increased by 3.35 percent. These addresses were reported to be in possession of 0.01-0.1 Ether.

Retail accumulation of addresses holding 1-10 Ether and 10-100 Ether has also been increasing for the past 6 months, according to Santiment datafeeds.

Merge, the long-awaited transition, has gained traction since its announcement. And, with the Ethereum Merge approaching, many people don’t want to be late.

What makes the Merge so anticipated yet again?

The Merger Alters the Game

The Merge represents Ethereum’s major upgrade, as it moves from the Proof-of-Work (PoW) mechanism to Proof-of-Stake (PoS) (PoS). The execution layer and consensus layer will be merged once the upgrade is complete.

As a result, the Ethereum network is highly scalable, secure, and stable. This is expected to be a watershed moment in the Ethereum ecosystem’s development.

Following the Merge (phase 0), the team will continue to work on shard chain implementation.

Sharding technology advancements will help reduce the amount of hardware required for the Ethereum chain, making it faster and more scalable while retaining some of its inherent security capabilities.

As a result, miners will no longer be able to mine ETH and will instead have to stake ETH into validators to obtain ETH. A number of upgrades have been carried out since the plan’s implementation.

Since January 2020, work on the serenity phase has been ongoing, with the primary goal of reducing the occurrence and intensity of network congestion while also addressing the ongoing issue caused by the PoW mechanism’s proclivity for excessive energy consumption.

The Delay: As Predicted

The Ethereum developer team announced on June 8 that the new Merge upgrade had been successfully deployed on the Ropsten testnet. The good news brought us one step closer to the goal of combining two blockchains and making the major shift from mining to staking.

According to the previous statement, the Merge was supposed to take place in early August. Despite the stETH (ETH staking on the Lido protocol) fiasco and problems with the Celisus lending platform, which clearly have an impact on Ethereum’s recent performance, many investors remain optimistic.

The most recent news from the core team, however, may be discouraging to the community.

Following the identification of difficulties by Beacon Chain and Ropsten in early June, the Ethereum development team decided to postpone the difficulty bomb until mid-August 2022 in order to have more time to study the system and discover new solutions for potential vulnerabilities.

In short, we agreed to the bomb delay. We were already over time, and want to be sure that we sanity check all the numbers before selecting an exact delay and deployment time, but we are aiming for a ~2-month delay, and for the upgrade to go live in late June

Ethereum lead developer Tim Beiko and the team

The “difficulty bomb” is a critical component of the network that was coded in 2016, when the idea for Ethereum 2.0, The Merge, arose.

According to some estimates, switching to PoS will reduce the Ethereum network’s energy requirements by up to 99.9%.

Furthermore, when compared to PoW networks, other PoS networks, such as Polygon and Fantom Opera, have low power requirements.

While Beiko did not mention The Merge in his recent post, delaying the difficulty bomb could cause additional delays for the event, which is set to take place in August 2022.

So far, no release date for Merge has been specified.

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