Ethereum Nears Another Milestone Ahead Of Merge, Rally Incoming?

Ethereum

Ethereum has been hitting different milestones in the last year. However, with the announcement of a set date for the move to proof of stake, aka the ‘Merge,’ there has been a flurry of activity on the network, pushing it towards even more impressive records. This time around, the milestone has come in the form of the total number of unique active addresses on the network. 

Nearing 205 Million

The rate at which new unique and distinct Ethereum addresses are being added to the network has seen an incredible push. In just 2022 alone, there have been more than 21 million distinct addresses added to the network. The daily rate for growth is at almost 62,000 wallets.

Presently, the total number of distinct ETH addresses is sitting above 204.6 million. Going by the current daily rate, it will take less than one week for the total number of addresses on the Ethereum network to hit a new all-time high of 205 million. 

To put in perspective how significant this milestone is, 5 years ago, in 2017, there were only about 18.4 million distinct ETH addresses. This means that the number of ETH addresses has risen more than 1,000% in the last half a decade. 

ETH holds above $1,500 | Source: ETHUSD on TradingView.com

If the number of ETH distinct addresses continues to grow at the current rate, then this number will be at almost 220 million by the time 2022 draws to a close.

Another Rally For Ethereum?

When the date for the Ethereum Merge had first been announced, ETH had gone on an impressive bull rally that had seen its price touch $2,000. The hype had died down, and ETH’s price had fallen back to $1,500, but as the Merge draws closer than ever, the crypto market has turned its gaze to the altcoin.

The Ethereum Merge is now only less than two weeks away, and the price of ETH continues to hold steady even when declines rock the market. Activity has ramped up, leading one to believe that this renewed interest could trigger more demand for the digital asset.

It is also important to keep in mind that staking activity remains on the rise, and there are now more than 13.5 million ETH staked, accounting for about 12% of the total circulating supply. As more investors turn towards staking to earn rewards, the reduction in supply could lead to a short squeeze that could trigger a rally, if only for a short time.

If the Merge goes as expected, there is likely to be competition between the new POS ETH and the forked POW ETH. Such competition can trigger a rally, although it would be a volatile one. Nonetheless, the price of ETH may retest $2,000 by the time the Merge is completed. 

Featured image from CNBC, chart from TradingView.com

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