On-chain data analytics platform Santiment pointed out that the nearly 80 percent rise of leading altcoin Ethereum (ETH) last month and significant market interest in it could be a good sign. The on-chain analysis platform said in a statement that the developments indicated that the Ethereum rise will continue. Here are the details…
Ethereum leads altcoin rallies
Ethereum (ETH) hit $1927 on Thursday, reaching its highest level since the beginning of June. This bullish story was published by Chinese crypto blogger and journalist Colin Wu. The author also stated that the amount of ETH that was liquidated following that was $125 million. According to the Santiment analytics team, with this price increase, other altcoins have also managed to perform well in the last 30 days. So, Ethereum led the altcoin rallies. Santiment says this is a sign that the uptrend will continue. The rally is mostly attributed to the success of “Goerli”, one of the testnets.
ETH broke through $2,000, with a 24-hour gain of 5%. In the past 4 hours, the liquidation amount of the entire network was 125 million US dollars.
— Wu Blockchain (@WuBlockchain) August 13, 2022
As we have also reported as Kriptokoin.com, Merge is seen as an important event that is expected to make ETH faster and energy efficient. Merge will own the blockchain underlying Ethereum’s transition from a proof-of-work system to a more costly and energy-efficient system called proof-of-stake. Proof-of-work consensus mechanisms depend on crypto miners to validate transactions that are more costly and have environmental risks. However, Proof-of-stake networks require validators to use a certain amount of tokens to participate. This makes them much easier to use. The event, which has been postponed multiple times, is now scheduled to take place in September.
ETH metrics rise as Merge approaches
ETH staked on the network continues to rise steadily as the merger approaches. The first validator node was created more than a year ago. Since then, thousands of validators have joined the effort. Several milestones have been reached along the way, and most of the testnets have been successfully combined. Considering that ETH has dropped more than 50 percent from its all-time high, this amount is substantial. The total number of ETH staked prior to the merge reached more than 10% of its total supply.
Due to FOMO and merger expectation, the total number of ETH staked has exceeded 13.3 million. This shows that about 11 percent of the total supply of ETH is already out of circulation. In late June and throughout July, Ethereum dropped as low as $1,000. However, there is now a firm date for the Merge upgrade. Therefore, the price continues to rise. The upgrade will take place in September.
