Ethereum miners’ ETH savings at the highest level in the last four years

With Ethereum Merge scheduled for September 15, the Ethereum blockchain network will transition from a proof-of-work (PoW) mining mechanism to a proof-of-stake (PoS).

Merge, which will allow the network to use a more energy efficient way to verify transactions and completely eliminate PoW mining, is seen as one of the biggest updates to the Ethereum blockchain. With the Merge date approaching, the savings of Ether (ETH) miners also saw the highest level in the last four years.

According to Oklink data, the total amount held in Ethereum miner addresses has reached 261,848 ETH, whose value exceeds $415 million. The accumulation level of miners reached levels last seen in April 2018.

Ethereum miners' ETH savings at the highest level in the last four years
Balance of ETH miner addresses. Source: Oklink

The increased accumulation of ETH by miners is attributed to several factors, notably the expectation of price rise before the key update. While most people think that Merge will be a “buy the rumor, sell the news” kind of event, the accumulation of miners reveals an increased positive sentiment.

Another important factor is the hard fork. The vast majority of ETH miners support the hard fork to keep the PoW chain alive and continue mining. In the case of a hard fork, miners who accumulate ETH will receive an equal amount of airdrop from the fork token. While there is no guarantee that the value of these tokens will be proportional to the main ETH chain, it still means additional capital.

Yohannes Christian, research analyst at cryptocurrency exchange Bitrue, told Cointelegraph:

“The Difficulty Bomb will make post-Merge mining unprofitable. Miners are also trying to collect as much Ether as possible while they still have time before this happens.”

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