Ethereum On-chain Transactions Hit 5 Year Low as Merge Protocol Upgrade Gets Scheduled for Sep 15-16
The Ethereum blockchain has achieved its lowest level of usage over the past five years, as the volume of contracts placed on the chain has plummeted and dipped under 300,000 installations, remaining at about 2.7 million in July 2021.
Such a precipitous decline in the count of contracts published on the chain is attributable to two aspects: the industry-wide crisis brought on by a shortage of inflows and the imminent fundamental upgrade, which may have induced a lull before the storm.
The surge in the count of installed contracts over last year’s summer was the impetus for the rally that nearly brought Ethereum beyond $5,000, which stays the main objective for the second-largest crypto on the market. An era of elevated fees that actually discourage programmers and resulted in a network impasse in which no innovative approaches appeared is one of the primary causes of such a significant decline in the count of installed solutions.
There will presumably be a rise in the count of fresh applications and network interaction on Ethereum following the Merge, as new innovation tools and an improved network landscape should lure more enterprises looking to invest in the fresh version of the crypto currency sector’s second-largest system.
As per the response of the crypto market, many investors anticipate a rise in the rise of Ethereum users after the triumphant implementation of the upgrade. At the time of publication, Ethereum is fallen below the $2,000 price barrier to trade at $1,926, down 2.50% in the last 24 hours.
The Merge has been awaited for so years and with such fervor that it appears to be the defining moment for both Ethereum and Decentralized Finance at this time.
As a matter of fact, despite common belief, Layer 2 options that have been performing the same function as The Merge will also likely gain from it.
Just after Goerli Testnet Merge was completed, it was stated that “The Merge” would occur between 15-16 September. This will transform Ethereum into a Proof of Stake (PoS) protocol chain, making it quicker, cost effective, and more scalable.
Utilizing these methodologies, Ethereum L2s such as Loopring have indeed advanced DeFi. Loopring specifically intends to use The Merge to develop into a DeFi and NFT hub in the coming months. Loopring plans to build and distribute open-source technology to make it simpler for developers to create NFT markets as part of its future objectives.
The Ethereum Merge has been scheduled for TTD 58750000000000000000000
This is approximately Sept 15-16th
The Merge is officially scheduled 📆
— bankless.eth (@BanklessHQ) August 11, 2022
Loopring revealed yesterday the establishment of a second NFT marketplace on L2 in conjunction with Uptick, which is a continuation of its previous initiative. This will also increase the usage of Loopring’s native crypto token LRC by enabling its minting, listing in exchanges, and trading.
Because L2 more than 135k accounts that have executed approximately $5.4 billion in deals since its start, the network has a great deal of development potential. This will also have necessary effects on the value of the token. Particularly when it is a whale token that controls over 42 percent of the floating LRC supply.
Even though the rest of the 58% is held by investors and traders, additional individual investors are still required. Just under 0.27 percent of Loopring’s investors perform transactions on-chain at now.
There is a demand for additional serious users since just 475 of the 175k existing members have active addresses. When the market rebounds and Ethereum undergoes The Merge within the coming month, the scenario is anticipated to improve.