Whales Move Their ETH To Exchanges Before The Big Ethereum Merge

eth-ballenas-merge

✍️ 30 August, 2022 - 16:30 👤 Editor: Jakub Motyka

  • Whales are moving their ETH funds to different exchanges.
  • Binance and other exchanges will suspend withdrawals and deposits of ERC-20 tokens while update is performed.
  • The next big update of Ethereum (ETH) is just around the corner.

The main investors of the network, and several whales, of Ethereum (ETH) are sending their funds to different exchanges in anticipation of the Merge. According to a study by Santiment, the cryptocurrency market analysis company, whales are withdrawing large amounts of ETH from their cold wallets. Some of the largest wallets on the web have reduced their holdings by an average of 11% in recent months.

In the wake of everything related to the new update of the Ethereum blockchain, its native token ETH has been on a bull run. However, this movement of the whales could quickly reverse the trend. This, due to the large amount of incoming liquidity to exchanges that adds powerful selling pressure to the asset.

Ethereum Is About To Implement Its New Update: The Merge

The Merge will be an upgrade where the Ethereum mainnet will merge with the Beacon Chain, and adopt the Proof of Stake (PoS) method for consensus. In other words, the blockchain will stop depending on miners to protect the network and will considerably reduce its energy consumption.

Read This: Will It Stop Being Profitable To Mine Cryptocurrencies In 2023 With Ethereum 2.0?

The event should take place between September 10 and 20, and has drawn the attention of many investors within the cryptocurrency market. Since the announcement of the Merge launch date, Ethereum's transaction volume increased considerably. During the month of August, the same volume of ETH represented 40% of the crypto market capital. However, in recent days it has been correcting, remaining in the range of USD 1,500.

How Do Exchanges And Whales Prepare For The Ethereum (ETH) Merge?

The largest exchange in the world in terms of volume, Binance, announced through a statement that it would take some security measures during the Ethereum Merge. One of these is the suspension of deposits and withdrawals of ERC-20 tokens from the ETH blockchain from September 6 until the update is completed.

In turn, other famous exchanges such as Coinbase have decided to take similar measures given the possible results of the Ethereum Merge. They also evaluate the possibility of accepting a controversial “fork” as a result of the update.

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Angélica Añez
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