A leading blockchain analytics firm is shedding light on the hype surrounding one of the biggest events in the crypto markets this year.
In the latest installment of its newsletter, IntoTheBlock says Ethereum’s (ETH) highly anticipated upgrade to a proof-of-stake consensus model does not appeal to new users.
“While the transition to proof of stake is highly anticipated within the crypto community, it does not appear to be embraced by new users.”
According to the analytics firm, new addresses created on the Ethereum network is at its lowest level in two years.
“While centralized exchanges may be seeing new users buy ETH, this is not reflected in new addresses as they typically combine multiple people’s holdings within a select number of addresses. Therefore, even though there may be some buying from new entrants, the lack of new addresses on-chain shows demand to use the blockchain is declining.”
IntoTheBlock says the lack of new entrants can also be seen in Ethereum’s network fees. According to the firm, network fees on the Ethereum blockchain are at two-year lows.
“Gone are the days of hundred-dollar gas fees on Ethereum. While it is now significantly more affordable to use Ethereum, user demand is lagging now that much of the speculation has left, a pattern that had occurred on previous bear markets.”
IntoTheBlock also highlights that outside of the crypto community, the interest in Ethereum’s upgrade is lackluster.
“In spite of the upcoming milestone, relatively few people are searching for Ethereum. This may indicate an echo chamber taking place, where crypto-natives are more closely anticipating The Merge while people outside the industry still remain largely unaware.”
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