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According to the most recent Arcane Research data, Ethereum miners added around $30 billion in the cryptocurrency to their wallets in the last two years thanks to ETH mining operations. With the Merge update looming, the market will no longer face billions worth of selling pressure every year.
Should investors be happy?
Billions worth of selling pressure from a certain entity of traders is always a negative factor for an asset's performance on the market, especially if the coin's liquidity is problematic or relatively low.
If #Ethereum's merge on Wednesday goes as planned, ETH miners will be obsolete.
— Arcane Research (@ArcaneResearch) September 12, 2022
ETH miners earned $18 billion in 2021, compared to $17 billion for BTC miners. pic.twitter.com/md4YPhhDkZ
Considering Ethereum's ability to absorb large selling and buying volumes, the absence of $30 billion in selling pressure in only two years should most certainly help with the positive performance of the cryptocurrency on the market.
But the lack of selling pressure from Ethereum miners will be partially replaced with validators' profits from Ethereum staking, which are still singificantly less than profits from mining operations.
It is also important to notice that the lack of Ethereum network usage would have affected the mining's financial efficiency if the PoW algorithm were still active.
Ethereum losing momentum
Only a few days prior to the Merge, Ethereum's price performance was showing exceptional results with a short-term 20% rally, while most digital assets were losing up to 7% of their values.
Unfortunately, the situation has changed, and Bitcoin, Solana and other assets have entered a short-term bullish cycle, but not the second biggest cryptocurrency on the market. The main reason could be tied to the technical migration to different networks or the lack of motivation to actively trade the asset, which might potentially face some technical issues during the upgrade.
Alex Dovbnya
Valeria Blokhina
