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.”
You can read the full report here.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Titima Ongkantong/VECTORY_NT