Within a decade from now, when The Merge is only 10 to 15 days away, the Ethereum network is set to experience another dramatic change in the cryptocurrency market. The community is keenly monitoring the events relating to this one, and of course, the Ethereum ecosystem is humming along more actively than ever. Let's examine the ensuing encouraging signs with Holdstation to assess and provide your own financial viewpoint on the future of Ethereum post The Merge.
Number of Ethereum Unique Addresses
Prior to The Merge, there were a significant increase of Ethereum unique wallet addresses, reaching 204,633,147 addresses at press time. According to data from Etherscan, the number of unique wallet addresses has increased over the last 30 days, with 70,000 wallet addresses being averagely created per day. On the other hand, the number of unique wallet addresses increase daily on Ethereum is still somewhat less than the growth of unique wallet addresses on BNB Smart Chain, which has an average of more than 350,000 wallet addresses produced in the previous 30 days. However, with approximately over 20 million unique wallet addresses than BSC, Ethereum is still slightly in front of both chains' combined total of unique wallet addresses.
Even more unique wallet addresses do not mean that user activity on Ethereum network will increase, simply because investors can create several wallet addresses with just a single click. However, the information above can demonstrate investor interest in advance of upcoming The Merge event.
Total staking ETH on Ethereum 2.0
Besides the rise in the number of Ethereum wallet addresses ahead of The Merge, the amount of ETH staked on Ethereum 2.0 has also grown significantly in the last few months, with total staking capitalization reaching 20,880,503,238 USD equivalent to a total value staked of 13,304,864 ETH and staking ratio reaching 10.89%.
It is evident that the rise in ETH staking over the past few months is a sign that Ethereum holders have a favorable outlook on what will happen before and after The Merge. It is just when the market is looking in the same direction and is optimistic about how successful The Merge will be, and Ethereum's value will rise significantly after The Merge.
Ethereum Development Activity
A third signal that investors shouldn't disregard is the Ethereum development activity index in addition to the first two indicators. An indication of development activity aids investors in determining the project's stage of development and whether it is progressing well or is being abandoned. As of the press time, according to Santiment, the Ethereum network had 401.97 points in development activity, placing it fourth in Santiment's rank of development activity index, just behind Kusama (471 points), Polkadot (471 points), and Cardano ahead of Vasil Hard fork with 493.5 points.
Ethereum Money Flow
The number of sharks who accumulate ETH is still displaying encouraging indicators when the quantity of ETH accumulated in the past month has increased compared to the previous month, according to data of SharkScan. Particularly, it can be seen through three significant August accumulations: 53 million USD (9339 ETH) on August 16, 137 million USD (74736 ETH) on August 18, and most recently, more than 169 million USD (113895 ETH) on August 31. This demonstrates that there is a strong money flow into Ethereum prior to the anticipated date of The Merge, indicating a positive cash flow.
Through the above signs, Ethereum is now presenting the market as being relatively bullish, despite the fact that there are specific concerns about The Merge and whether this transition will be successful or not. Through the following indications, it can be seen that both big investors and small investors have a favorable opinion of Ethereum's value after The Merge. However, the worst-case scenario can not be ruled out if this transition does not go as planned. Before The Merge event occurs in mid-September, investors can use the aforementioned signs to guide their investment decisions.