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Seeking Alpha 2022-08-09 06:38:30

Ethereum Network Grows Despite The Hash Rate Drop

The total amount of ETH deposited into the staking contract has increased gradually.The total number of unique addresses with a non-zero balance has steadily risen since Ethereum’s inception.The number of Ethereum unique active addresses has surged recently.There has been a gradual increase in the percentage of holders who keep their coins for more than a year.Ethereum futures and options markets are heating.Investment ThesisDespite the present bear market, the Ethereum (ETH-USD) network has expanded and recently responded to the announcement of the Ethereum merger. In terms of network profitability, ETH is running into a significant resistance in the range of $1800 and $2400. When they hit break-even, holders who are losing will probably divide their pack to cover their positions.The Adoption Towards Ethereum 2.0The current drop in Ethereum hash rate before the merge into the POS chain itself wasn’t a bad thing because mining ETH could be a concept of the past when Ethereum upgraded to the POS consensus mechanism. It suggests that miners might have had to shut down their equipment because they need to cover their average cost or reach break-even. So far, it doesn’t adversely affect the network security, although there may be some bad network effect on the price in the short term. Ethereum hash rate has dropped before the merge into the POS consensus. (Etherscan)Ethereum 2.0, also referred to as Serenity or ETH 2.0, is an upg...

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