The Merge Begins, ETH’s Weekly Social Engagements Increase by 53%

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The much-anticipated Ethereum merge is set to see the light of day is about to begin, according to a Google countdown. 

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With the crypto community waiting with bated breath to see how this event transpires, given that it’s the biggest software upgrade on the Ethereum network, the second-largest crypto was hovering around $1,603 during intraday trading. 

The merge is significant because it will transition the current proof-of-work (PoW) infrastructure to a proof-of-stake (PoS) consensus mechanism, deemed more environmentally friendly and cost-effective. 

Social engagements on the Ethereum network have also been going through the roof, with the weekly surge being 53.3%, according to market insight provider LunarCrush. 

Furthermore, ETH’s speculative activity has increased. Crypto insight provider Glassnode pointed out:

“Ethereum speculative action continues, with over $6.12B in outstanding Open Interest for Call Options. Put options account for a much smaller $1.5B, making for a Put/Call Ratio of 0.25.”

American multinational investment bank Citigroup or Citi recently pointed out that the Merge would slash the overall Ether issuance by 4.2% annually, making it deflationary, Blockchain.News reported. 

Meanwhile, crypto traders have been significantly shorting Ethereum relative to Bitcoin (BTC) in anticipation of the Merge. Glassnode explained:

“The spread between BTC and ETH perpetual futures funding rates is pushing to a new ATH of 77% annualized. This indicates traders are heavily short ETH relative to BTC, likely speculating/hedging for the upcoming Merge.”

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Source: Glassnode

Therefore, time will tell how Ethereum plays out in the post-merge era, with stakes high that it will become a deflationary asset.

Image source: Shutterstock

Disclaimer:- Investing in bitcoin and different preliminary coin choices is extremely dangerous and speculative. Because every particular person’s scenario is exclusive, a certified skilled ought to at all times be consulted earlier than making any monetary choices. The Crypto Kingdom makes no representations or warranties as to the accuracy or timeliness of the knowledge contained herein.

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SEE ALSO:
Ethereum Under Potential SEC Scrutiny after The Merge: WSJ

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