The broader cryptocurrency market cheered after the FOMC meeting on Wednesday, July 27, as the Federal Reserve decided to increase the interest rate by 75 basis points, on the expected lines.
More than $100 billion have been added to the broader cryptocurrency market. The world’s second-largest cryptocurrency Ethereum has shot up more than 16% as of press time moving past $1650 levels.
This happened as the Ethereum address activity reached an all-time high of over 1 million. As on-chain data provider Santiment explains:
Ethereum shattered records Tuesday after an incredible surge in address activity broke its #AllTimeHigh by a wide margin. 1.06M $ETH addresses made transactions, & the team is still investigating the cause of the +48% increase over the previous record.
A day before, in its report, Santiment noted: “A huge spike in address activity appeared today, the largest one ever in fact, but on lower time frames this activity looks very coordinated, so take this with a grain of salt. This might be some kind of a large-scale airdrop farming operation”.
Ethereum – The Merge Upgrade
In the last two weeks, the ETH price has rallied more than 60% over the flow of positive news in the market. After too much market pessimism, ETH reversed its trajectory from the low of $1,000 over the announcement that the Ethereum Merge upgrade shall happen sometime around mid-September.
Following the success of The Merge upgrade on its testnets, Ethereum developers are confident that the final mainnet launch shall happen in the next two months.
As ETH price rallies hard, one area of concern is that the ETH exchange supply has been increasing very fast. The Santiment report explains: “Notice a sharp spike just recently, which stands for 0.5% of total supply, or approximately 500k ETH added to the exchange wallets. Looks like people are seeking to exit their positions, whether for the reason of price declining, or anticipating the negative data releases”.
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