#ForexChief #Ethereum #forexnews #ETH #BTC #NFT #crypto #ThreeArrowsCapital #VoyagerDigital #Celsius⠀
⚠️ Market is losing Ethereum: hiding coins in a safe⠀
💵 Active reserves of crypto exchanges over the past week decreased by 7.3% to 22.8 million ETH. Users massively withdraw coins to cold wallets: speculators are scared by the transition of Ethereum to PoS and a series of bankruptcies of major market participants.
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Ethereum has always relied on miners who collect transactions into blocks and guarantee a level of decentralization. However, low network bandwidth (no more than 20 transactions per second) at high loads leads to an increase in the cost of commissions. For example, after the release of a new collection of NFTs from Yuga Labs in early May, the average transaction cost almost $200.
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To save the situation, Vitalik Buterin, «Father» of Ethereum, chose to switch to PoS, where validators should work instead of miners. Iintroduction of this mechanism will lead to an increase in decentralization, security and a reduction in energy consumption by 95%. So ETH will successfully compete with the «arrogant young» tokens in the speed and price of transactions.
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Since November 2020, a test blockchain on PoS has been developing in parallel with the current network. Users can deposit funds into a deposit contract and earn income from staking. The volume of such contracts already totals over 13 million ETH or $20 billion. Therefore, players are now actively buying up ETH for savings on wallets or replenishing a deposit.
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Second reason for ETH to leave market is loss of confidence in investment funds. Today, Three Arrows Capital, Voyager Digital and
Celsius are filing for bankruptcy, large crypto lenders are suspending ETH withdrawals (for example, Babel Finance and Vauld).
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Two weeks ago, someone from the Ethereum team announced date for the full transition (September 19). During this time, ETH has already risen by 23% against BTC, because a long-term investor believes in the potential of Ethereum. So we stock up on coins and wait for changes.
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Profits to y’all!