Traders Withdraw $3.6 Billion In Ethereum From Exchanges In 17 Days
The predicted date for The Merge, as revealed by Ethereum (ETH) developer Superphiz, is less than two months away, and the announcement seems to have made some progress.
First, the value of Ethereum skyrocketed. Second, Ethereum’s hashrate has been down 18.21% since June 30. The data also shows that the amount of ETH stored on exchanges has plummeted. About 25.13 million ETH was held on exchanges on July 5 and is now only 22.77 million, worth nearly $35 billion.
On July 9, 2022, the difficulty bomb was delayed, and The Merge was pushed back at least until September. The Merge is an upgrade that moves the Ethereum network from PoW to PoS.
Ethereum currently operates two chains, one of which still uses PoW and the Beacon chain designed for PoS. On the same day, it was reported that 13,012,469 ETH was deposited into the Ethereum 2.0 contract. Since then, 136,416 ETH has been deposited into the contract, and there are 410,903 validators.
On July 14, software developer and Beacon chain community director, Superphiz revealed a tentative date for The Merge that could take place during the week of September 19. However, the developer emphasized that that date is not yet an exact date and that the community should pay attention to official announcements.
Since then, the price has increased 36.8% against the US dollar in 30 days, as The Merge boosted the price of the smart contract platform token. Amid the price spike, Ethereum’s hashrate dropped, slipping below the region of 1 petahash per second (PH/s) or 1,000 terahash per second (TH/s). Computational processing power has improved as the network hashrate is approaching 1,000 TH/s.
Seven-day statistics show that 2.36 million ETH has been removed from exchanges since July 5, according to CryptoQuant data. Ether is following the same trend as Bitcoin, as both have recently withdrawn from centralized exchanges in large numbers.
The number of BTC holdings on exchanges decreased by 9.109% compared to the statistics recorded on May 22. Recent data shows that buyers and holders also pull large amounts of ETH out of exchanges. Data from Chainalysis indicates that:
“The amount of ETH held on exchanges changed on July 21, 2022, recording a peak of 1.82 million ETH in over 365 days.”
While the most recent withdrawals were partly due to The Merge, investors have been removing large numbers from exchanges due to crypto companies having significant financial troubles. Three major companies have filed for bankruptcy in the past few weeks, and about five or more crypto platforms have suspended withdrawal services.
For example, individuals holding cryptocurrency on platforms like Celsius and Voyager Digital have frozen their accounts. The fear of losing money to an insolvent crypto platform may have caused an unprecedented wave of withdrawals.
During the first week of July, BlockFi CEO Zac Prince told the public that although the company had no exposure to Celsius when Celsius froze operations, it prompted “an increase in customer withdrawals” on the BlockFi platform.
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