The recently launched Ethereum Merge has resulted in a decline in the cumulative holdings of large ETH investors.
Santiment, a leading cryptocurrency on-chain analytics platform that tracks the top 2,000 cryptocurrencies, noted that Ethereum whales have continued to reduce their position in the asset class since the Merge upgrade went live.
According to Santiment, the cumulative holdings of addresses holding between 1,000 and 10,000 Ethereum have dropped by 2.24% in the last six days since the Merge launched.
In a similar development, addresses holding between 100 to 1,000 ETH have recorded a reduction of 1.41% in their cumulative holdings.
“The #Ethereum #merge on 9/15 has brought on a shift in large address behavior. In the past 6 days since the shift to #proofofstake, addresses holding 1k to 10k $ETH have dropped 2.24% of their cumulative holdings. 100 to 1k addresses have dropped 1.41%,” Santiment noted in a tweet today.
🐳 The #Ethereum #merge on 9/15 has brought on a shift in large address behavior. In the past 6 days since the shift to #proofofstake, addresses holding 1k to 10k $ETH have dropped 2.24% of their cumulative holdings. 100 to 1k addresses have dropped 1.41%. https://t.co/qdOVcdDjgC pic.twitter.com/fcFy8hTUGD
— Santiment (@santimentfeed) September 21, 2022
Ethereum Merge Launch and Its Subsequent Effect
The Merge is a significant event for the Ethereum network. The upgrade resulted in the transition of Ethereum from a Proof-of-Work (PoW) algorithm to a Proof-of-Stake (PoS). Since the upgrade went live, a lot of controversies have trailed the event.
Firstly, a majority of miners led by Chandler Guo kicked against the event, which resulted in a network fork that birthed EthereumPoW.
Moments after the Merge went live, the price of Ethereum has been on a massive decline, down 14.5% in the past seven days. The massive decline in the value of ETH stems from the rapid sales of ETH by whale investors, who are unhappy with the network’s transition to a PoS algorithm.
Interestingly, Ethereum co-founder Vitalik Buterin said last month that he does not expect ETH to be harmed by another fork. According to him, many Ethereum stakeholders are in support of the network’s transition to a PoS algorithm.
“In general, my impression from pretty much everyone I talk to in the Ethereum ecosystem is that they have been completely supportive of the proof-of-stake effort, and the ecosystem has been quite united around it,” he said.
On the contrary, the value of ETH has continued to decline and large Ethereum holders are offloading their assets days after the Merge launch.