Ethereum Whale Address Increases Rapidly As ETH Price Rise

The prospect of an early upgrade to Ethereum, one of the leading blockchains, has driven the price of its native token ETH as well as its staking derivative called stETH. As a result, the number of whales has also increased. Last week, Tim Beiko, a member of the Ethereum Foundation, announced the launch of the ‘Merge’ upgrade in September.

After this upgrade, the Ethereum network will shift from a more energy-intensive proof-of-work mechanism to a more environmentally friendly proof-of-stake mechanism. Data from on-chain analysis firm Santiment shows that the number of whales holding between 1,000 and 100,000 ETH has risen sharply over the past few weeks. Earlier the number of these whales was decreasing. By the end of last week, more than 130 such new wallets had emerged. This trend is also visible in the number of small investors in ETH. With this the number of addresses holding 100 or more coins has reached a 15-month high with over 45,000.

The price of Ether has also risen by about 40 percent in the past few weeks and stood at around $1,524 when the report was published. Earlier, it had fallen to about $ 1,000 as well. Merge was supposed to launch a few years back but it has been delayed several times. However, people associated with the market now expect it to be launched soon. The delay in the upgrade had an impact on the price of Ether as well. It is the second largest cryptocurrency by value.

The upgrade could also bring relief to stETH investors. Developers are recoding Ethereum’s mining protocol from its current ‘Proof of Work’ (PoW) model to ‘Proof of Stake’ (PoS). This upgrade is expected to reduce Ethereum’s electricity consumption by up to 99 percent. Ethereum miners have to use large server farms to order transactions on the blockchain, resulting in higher electricity consumption and increased carbon emissions. One estimate stated that the electricity usage of one Ethereum transaction is equivalent to 1,40,893 Visa credit card transactions.

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