As we get nearer and nearer to one of many largest occasions within the temporary historical past of cryptocurrency – the Ethereum Merge – there are a variety of metrics that are suggesting exercise is choosing up throughout the area.
Ethereum Title Service
The primary is the Ethereum Title Service (ENS), which noticed its third highest month of income in August. Producing $4.3 million in income, the service noticed 34,000 accounts register names for the primary time.
August 2022 stats for ENS
– 301K new .eth registrations (whole 2.17m names)– $4.7m in protocol income (all goes to the @ENS_DAO)– 2,744 ETH in income (third highest month)– 34K new eth accounts w/ at the very least 1 ENS title (whole 540k)– >99% of OpenSea area vol pic.twitter.com/utU8i4cBMT
— ens.eth (@ensdomains) September 1, 2022
These names are a neat function of Ethereum. As a substitute of offering anyone a protracted Ethereum handle, as an alternative a easy title ending in .eth will be supplied, equivalent to harrypotter.eth, for instance. This title will be linked to 1’s pockets, that means it’s all that must be given when asking for a fee. Easy and intuitive.
The enhance in these names being registered reveals that persons are positioning themselves for the Merge, slated to go reside on September fifteenth.
13 million ETH staked
The quantity of ETH locked up within the staking contract is now as much as 13 million ETH, which is about 11% of the full provide. On the present market worth of $1,635, that interprets to over $21 billion of Ethereum locked up within the staking contract.
What’s vital to notice right here is that the Merge won’t allow withdrawals of this ETH. I had beforehand speculated about whether or not a flooding of ETH into the market post-Merge might place downward strain on the value – in any case, a lot of the Ethereum has been locked up for fairly some time, because the above graph reveals.
Nonetheless, buyers will be unable to withdraw their ETH till one other improve is applied, which isn’t deliberate for six months to a yr down the road. This could uninteresting the priority across the provide/demand degree because the Merge goes reside. There are additionally liquid staking options which imply the liquidity has not been completely inexistent up to now.
Macro
And so we shut in on the watershed second, solely two weeks away as I write this. The massive query stays, will this be a “purchase the hearsay, promote the information” kind occasion, or will Ethereum pump off the again of it.
My ideas for the second are easy – I believe for the short-term worth motion, the macro local weather is at the moment way more vital, with spiralling inflation. A hawkish Fed and tense geopolitical local weather nonetheless driving markets throughout the board.
