The company focused on on-chain analytics Santiment said that Ethereum holders are selling their ETH. According to the company’s data, in the past five weeks ETH investors have sold 3.3 million Ether. This behavior by ETH investors may have contributed to the drop in the cryptocurrency’s price. As Santiment reported, these sales were intensified after the activation of The Merge.
The amount of ETH sold is equivalent to about $4.2 billion. In the same period, the price of Bitcoin fluctuated, while the ratio between ETH and BTC regressed sharply, Santiment said.
The company pointed out that this shows that the selling has caused the price of Ether to retreat much more than Bitcoin the same period. Since the beginning of September, BTC has fallen 2.32%, while ETH has depreciated 15.92%.
In this way, the holders may have caused Ethereum to witness a devaluation seven times greater than that of BTC.
“Ethereum’s shark and whale addresses (with balances between 100,000 and 1 million ETH) are 3.3 million ETH short over the past five weeks,” the company said.
After Ethereum sharks and whales accumulated 2.2 million ETH together, there was a 3.3 million ETH decline in holdings, Santiment notes. Ethereum’s supply is 122.37 million ETH, according to CoinMarketCap.
During July and August, the price of ETH expressed in BTC rose 43 percent. Meanwhile, since the beginning of September, that index has declined 12.7 percent to stand at 0.07, according to TradingView.
Now, after the activation of The Merge, Ethereum is at 51% complete development, according to Vitalik Buterin. Now, as per the Ethereum Foundations roadmap, after The Merge, Ethereum will still undergo other updates.
These include The Surge, The Verge, The Purge and The Splurge. These updates should happen in parallel, according to Vitalik.