It will not have escaped anyone that the Ethereum network has just entered a new era. This following the validation of its merger – The Merge – just over a week ago. A major event expected and “prized” by the market since the official estimate of its final date. All of this originated froma rise in the price of its cryptocurrency ETH which will not last longer than the implementation of this new version Proof of Stake (PoS) of its blockchain. Could it be because of his former miners selling their accumulated ETH stocks during their mining activity?
The divorce is officially validated between the Ethereum network and its ex-miners, material managers of its Proof of Work (PoW) version. A painful operation for them, whose last last stand was the creation of a useless fork called Ethereum PoW. With an airdrop to the key whose profitability has never been interesting. And a “project” coping with its emptiness with the inexorable plunge of its cryptocurrency ETHWwhose losses are now over 90% since its launch HUD.
However, this strategic separation does not completely cancel the presence of its ex-miners on the new Ethereum network. Because during their digital work, they have amassed a large amount of ETH cryptocurrencies, as remuneration for this service rendered. A hoard estimated at over 245,000 units at present (about $330 million). But with a small difference that could well create important consequences. Because as explained by Alexandre Lores, director of blockchain market research at Quantum, “ for the first time, these miners have no future business relationship with Ethereum“.
Ethereum vs miners – ETH cryptocurrency drop
An unprecedented situation in the cryptocurrency sector. Because it is the first time that a blockchain separates from all its minors, more forcefully than willingly. And this innovative operation could well be the source of major movements involving the ETH cryptocurrency. Like for example these 16,000 units (about 20 million dollars) already passed through the resale box, barely a week after the validation of The Merge. But that ultimately only represents a tiny fraction of the 341,000 units held in the vaults of these fallen Ethereum network players.
” Miners dropping ETH is an overhang that will need to be overcome over the next few months in order to resume the uptrend, but it will happen. »
Lucas Campbell, Bankless Newsletter Editor
Of course this sum represents only a tiny part of the available quantity of ETH cryptocurrencies (about 120 million units). But immediately a little more if we consider the number of units blocked under its brand new Proof of Stake formula. That’s to say 14.6 million ETH ($19.7 billion) put out of circulation for a fixed period. And a current downtrend much more surely initiated by the principle “buy the rumor and sell the news”.
The real question remains to know what the ex-miners of the Ethereum network will actually do with these funds. Will the trend be resale with a revengeful tone? Or to staking in order to continue the adventure within this new operating model with energy consumption reduced by more than 99.9%?
Whatever, only a massive and coordinated resale could have a real influence on the price of the cryptocurrency ETH. And in any case, this would only have a short-term impact, with no significant consequence vis-à-vis a possible return to an upward trend that everyone is hoping for.
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