The Merge is touted as one of the biggest upgrades for the Ethereum blockchain. This is because it will help the network move to more energy efficient methods of validating transactions and eliminate PoW mining entirely. As the merger date approaches, Ether (ethereum) miner balances hit a four-year high.
According to Oklink data, the balance of Ethereum miner addresses has exceeded 260,000 ETH, totaling 261,848 ETH worth more than $415 million at current prices. Miner accumulation has reached a four-year high, similar to levels last seen in April 2018.
The increase in ETH accumulation by miners is due to several factors, the first of which is the expected price spike associated with key upgrades. While many pundits refer to the merger as a “buy the rumor, sell the news” kind of event, the accumulation of minors indicates bullish sentiment is on the rise.
Another big factor is hard forks. The majority of ETH miners are in favor of hard forks to keep the PoW chain alive and continue mining. Therefore, in case of hard forks, those miners holding ETH will also receive airdrops of the forked tokens. The value of the forked token may not appreciate in line with her main ETH chain, but the additional capital will be secured.
The forked PoW token has the backing of some major cryptocurrency exchanges like Bitfinex, while others like Binance are willing to list it if the demand for the forked token is large enough. says no.
Johannes Christian, a research analyst at major cryptocurrency exchange Bitrue, told Cointelegraph:
“Difficulty Bomb” makes post-merge mining unprofitable. Before this happens, miners are looking for every means to carry away as much Ether as they can while they still have time. ”
“Therefore, more computing resources are being put into mining Ethereum, which explains the very high miner balance,” he added.
the merge is A kind of dilemma for miners While this move eliminates PoW mining entirely, maintaining the PoW chain via hard fork does not guarantee a price increase as the majority of the community already supports the main PoS chain. Hmm.