Prior to the Merge update, the Ethereum (ETH) network dominated the cryptocurrency community debate in recent months. The news of the historic upgrade resulted in a temporary increase in the price of Ethereum, which has subsequently declined to owe to the volatility of the larger cryptocurrency market.
Using a seven-day moving average, the number of Ethereum addresses in loss reached a new monthly high of 38,001,366 as of August 30, according to statistics from blockchain monitoring platform Glassnode.
Notably, the Merge upgrade, which will switch the Ethereum network to Proof-of-Stake (PoS), is seen as a positive trigger for Ethereum. A successful shift from Merge to a PoS will speed transactions and reduce energy use.
However, the second-ranked cryptocurrency by market capitalization was not immune to the larger market collapse, which was partially prompted by the Federal Reserve’s aggressive attempt to manage inflation by increasing interest rates.
The waning optimism around the network upgrade and the lost addresses implies that there is no assurance that the move will result in profitability. Antoni Trenchev, a co-founder of the Nexo crypto-lending platform, supports this element.
Trenchev feels Ethereum can only rise if the early steps of the Merge are successful and inspire community trust.
Despite the market’s volatility, crypto trading specialist Michal van de Poppe believes that the attitude around Ethereum is shifting, particularly in light of indications that the Merge may be successful.
Poppe said in a tweet on August 30 that the forthcoming split on September 6 would cause Ethereum’s price to hit $2,200.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.