Before the merge, a mysterious wallet deposits $434 million worth of Ethereum.
A unknown wallet made a $434 million deposit of 260,000 ETH on Binance hours before Tuesday’s Bellatrix Merge for Ethereum went live. The transaction demonstrating the unknown wallet moving ETH to Binance prior to the update was revealed by blockchain data analytics company Whale Alert.
The amount of money invested in Ethereum has dramatically increased as the network switches from Proof-of-Work to Proof-of-Stake. The event is the most anticipated in the cryptocurrency community, and it is predicted that the price of ETH will soar before the final upgrade. Thus, whales are taking advantage of the buzz since ETH could produce the desired effects in the days before the Merge.
According to a Bloomberg analyst, ETH might influence altcoins.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, told Barron’s that the Ethereum Merge might drive up the price of ETH.
In the days preceding the Merge, ETH, he said, may lure the other cryptocurrencies to better lands. The expert said that only Ethereum’s success will determine how the overall cryptocurrency market performs in September.
He continued by saying that if ETH surpasses $2,000 this month, altcoins may experience a rapid rise and set new monthly highs. McGlone also stated that with all eyes on the Merge, he thinks Ethereum might surpass $2,000 this month.
On Tuesday, the Ethereum network received the Bellatrix update, and the last upgrade, Paris, has begun. The direction of the remaining enhancements will be chosen by Paris. The complete switch from PoW to PoS, according to the Ethereum foundation, will occur between September 10 and September 20.
Ethereum will consume less energy and develop both technologically and environmentally with the new proof-of-stake algorithm. Once the Merge has been fully improved, the gas costs on the Ethereum network are also anticipated to decrease.
At the time of publication, the price of Ethereum was $1,516 and it has decreased 8.4% over the past 24 hours. The second-largest cryptocurrency is down 69% from the $4,878 all-time high it set in November of last year.