Since its London hard fork update, the second-largest cryptocurrency in the global crypto market has been sailing against the tides. This has tarnished the alt star’s pricing forecasts for restricted bandwidths. While Ethereum maximalists believe that the merging into ETH 2.0 will help to stabilise the issue. The delay in the upgrade coming online has been a source of frustration for traders in the industry.
Whales and retailers have been diversifying their portfolios with high-yielding digital assets in succession by pursuing a multichain approach. Users of the protocol, on the other hand, have staked over 9 million ETH, amounting to over $30 billion in ETH 2.0.
Is Ethereum’s Loss a Gain for Altcoins?
As previously stated, Ethereum whales have chosen a multichain strategy to diversify their portfolio with high-yielding digital assets. Several stores have begun imitating the strategies of wealthy investors in recent months. The top 1000 Ethereum addresses have been amassing alternative cryptos such as MATIC, LINK, SHIB, UNI, and FTX, among others.
Signs of revival
According to reports, “LINK” is the most traded token among the top 1000 Ethereum wallets over the past 24 hours. While UNI is the most commonly held token, SHIB is the most valuable token in terms of cash value. Among the top-10 tokens held by the top 1000 ETH whales in terms of average USD value. ETH, SHIB, FTX token, Stablecoins, OKB, BEST, GALA, CRO, and MATIC are examples.
The holders’ stake has been steadily growing; SHIB, which had a share of roughly 14 percent, now has a share of 15.09 percent. Following that are FTX Token (14.87 percent), USDT (7.28 percent), USDC (6.35 percent), MATIC (3.23 percent), and LINK (2.51 percent).
In contrast, 9 of the top 10 DeFi protocols ranked by TVL are built on Ethereum. Traders have started looking elsewhere because of the network’s excessively high gas prices, reduced TPS, and scalability.
Has ETH 2.0 seized billions of dollars from the mainnet?
The ETH 2.0 deposit contracts now hold over 9 million ETH worth over $30 billion. Consumers can move funds from the Ethereum mainnet to Beacon Chain, a secondary PoS network, using deposit contracts. Users have invested 9 million ETH in ETH 2.0 in a row, revealing the level of trust that users have in ETH 2.0.
The Ethereum community has been waiting for this merger for a long time, as users have been frustrated by the outrageous gas costs, low TPS, scalability, and rate of burn.
Since the start of EIP-1559, about 1,480,828 ETH have been burned, with a burn rate of 11.40 ETH/min now in effect. The average gas price, on the other hand, is 127 GWEI, which has been preventing consumers from conducting transactions and purchasing other digital assets.
Finally, the space is seeing a surge in multichain techniques, with a slew of apps operating on L-1s and L-2s. The action by wealthy investors will benefit developing protocols. The industry, on the other hand, is anticipating the merger of ETH 2.0. With the update now operational, we may anticipate fortunes to flow into ETH diamond hands. Having said that, Ethereum is a possible long-term investment.
Also read: Is This The Best Time To Buy NFT Tokens?
