With the Merge set for a launch in September, does Ethereum look ready for the next big step? For its part, ETH has registered an uptrend in price action over the month of July. However, the utility of Ethereum rests on many sectors of Web 3.0. While being the flagship altcoin, Ethereum heads other cryptocurrencies on a host of different fronts.
countdown begins
Changes to the Proof-of-Stake mechanism is set for release on September 19th. This is said to be the biggest change So far on the Ethereum blockchain. Ethereum has responded well to the hype since the beginning of July, taking a central position among the cryptocurrencies. Ether has also performed with the increasing hype around Ethereum.
Data recorded on Nansen revealed that WETH remains the favorite token of smart money. There has been a dramatic increase in the accumulation of WETH since mid-April. Interestingly, the majority of smart money held WETH for a longer term, with 76% of tokens held for 1-2 years or more.
Within 12 months the unique addresses on the network have grown from 150k to about 490k. This remains a feat for Ethereum as the crypto-market has fallen heavily for the above period.
There is also increasing investor confidence in the Merge with staking reaching new heights of late. Right now, 13.2 million ETH ($21.6 billion) have been deposited for staking. Among a total of 77.7K unique depositors, Lido Finance and Kraken head the list with 4.1M and 1.1M ETH, respectively.
Supply on the exchanges is still an important sign to understand trader sentiment. ETH has seen outflows from exchanges to a balance of 24.6M ETH to 22.2M ETH within just five months.
In DeFi also, Ethereum leads the way among other cryptocurrencies with clear dominance. In fact, Ethereum smashes all Layer-1 competition in terms of TVL.
At press time, it had a 65.32% market share in TVL with $58 billion. BSC is in second place with a TVL of just over $6.7 billion.
Conclusion
This data helps issue a strong case for Ethereum to prosper post-Merge. They also certify the growth of the Ethereum ecosystem in the broader crypto-market. The Merge itself is expected to bring a greater stream for Ethereum holders. At the same time, ETH is reacting very well to increasing hype.
ETH price is up over 50% since last month and continues to glow green on the price chart. Ergo, there’s reason to be positive about the market going forward.
