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<p>Ethereum completed a major network upgrade,  marking the crypto world’s most ambitious software upgrade to date and  paving the way for changes that could fuel increased commercial  blockchain usage. The upgrade, known as the Merge, was completed in the  early hours of Thursday, according to a tweet by Ethereum co-founder  Vitalik Buterin.</p><h2 id="header-0">Software Updates Resulted in Decreased Network Electricity Usage</h2><p>After the transition, the network’s native token, Ether, which was  stored in specialized wallets known as “staking wallets,” was used to  order transactions instead of power-hungry machines. As a result, it is  predicted that Ethereum will use 99% less energy.</p><p>Such a revolution had never been attempted in the history of crypto,  much less on Ethereum, which is home to 3,500 active decentralized apps,  from exchanges to games, that collectively handle billions of dollars  worth of cryptos. The Merge, which has been in the works for years,  doesn’t alter how Ethereum operates for end users. Still, it is a  crucial first step toward additional enhancements that will make the  network faster and less expensive and should further boost its  reputation and adoption.</p><p>The Merge altered Ether’s properties, making it more similar to  yield-bearing securities. According to tracker Staking Rewards, Staked <a href="https://www.cnbc.com/2022/08/19/ether-eth-price-outpaces-bitcoin-btc-as-ethereum-merge-nears.html#:~:text&#61;Ether%20is%20up%20100%25%20since%20its%20bottom%20in%20June%2C%20massively%20outperforming%20bitcoin" rel="noopener noreferrer nofollow">Ether will </a>generate  a return of around 5.2% after the Merge. The coin should become more  appealing to investors when combined with an expected net decrease in  Ether token supply soon after the update.</p><p>The Ether token has dropped more than 50% this year after increasing  five-fold in 2021. Over the last month, its performance has become more  closely aligned with that of Bitcoin, the world’s largest  cryptocurrency.</p><p>The Merge software upgrade is named after the existing Ethereum  blockchain, which will be combined with a parallel network that has been  running for almost two years to <a href="https://crypto.news/ethereum-merge-aftermath-can-switching-to-pos-reduce-crypto-industrys-emissions/#:~:text&#61;Ethereum%20Merge%20Aftermath%3A%20Can%20Switching%20to%20PoS%20Reduce%20Crypto%20Industry%E2%80%99s%20Emissions%3F" rel="noopener noreferrer nofollow">test the proof-of-stake </a>concept. The upgrade has been in the works for over seven years.</p><h2 id="header-1">The Risk of Bugs and Other Hiccups Remains</h2><p>Based on what happened after previous Ethereum software updates, the  Merge could be followed by days or even weeks of hiccups. Concerned <a href="https://crypto.news/merge-bull-run-to-the-crypto-market/" rel="noopener noreferrer nofollow">about bugs and hacks</a>,  crypto exchanges such as Coinbase Global Inc. halted Ethereum-related  withdrawals and deposits during the software upgrade. Aave, a crypto  lender, had suspended Ether borrowing ahead of the Merge.</p><p>The likely creation of copies of Ethereum that still use power-hungry  computers known as miners adds to the worry. These forks, such as  EthereumPOW, generate copies of Ether coins distributed to all  mainstream Ether holders. The tokens may be worth something. However,  the existence of multiple Ether versions, each running on a different  chain, may confuse and give rise to attacks and scams. Copies of other  tokens running on forked chains can, too.</p><p>While all current Ethereum apps and wallets have been replicated on  the forked chains, most apps are likely to be broken, as key players  such as USDC stablecoin issuer Circle and oracle provider Chainlink have  stated that they will not support the forked versions. It remains to be  seen whether the forked chains will be viable in the long run.</p><p>For years, large teams of<a href="https://www.coindesk.com/markets/2022/09/12/market-wrap-ether-falls-despite-merge-anticipation-bitcoin-climbs-as-investors-await-inflation-data/#:~:text&#61;Market%20Wrap%3A%20Ether%20Falls%20Despite%20Merge%20Anticipation%3B%20Bitcoin%20Climbs%20as%20Investors%20Await%20Inflation%20Data" rel="noopener noreferrer nofollow"> Ethereum</a> developers from all over the world have worked on the Merge. They  debuted Beacon Chain, a parallel network testing the ordering of  transactions via staked coins, or a system known as proof of stake, in  late 2020. Beacon was merged with the main Ethereum network using miners  in the Merge, making Beacon Ethereum’s way of testing the ordering of  network transactions.</p><h2 id="header-2">Fewer Ethereum by Next Year Due To Post-merger Ruleset Changes</h2><p>Post-Merge data shows that 297,000 ETH will be burned annually at  current rates, with issuance dropping from 3.78% per year to 0.22% to  0.25% per year. Miners would have produced 4,931,000 ether per year  before The Merge changed to PoS; annual issuance has dropped to 603,000  new ether per year.</p><p><a href="https://ultrasound.money/" rel="noopener noreferrer nofollow">ETH</a> has a circulating supply of 120,583,249 ether, worth $158.57 billion at current exchange rates.</p><p>If Ethereum never merged, the total supply would be around  125,514,249 by September 19, 2023, without accounting for EIP-1559’s  burn rate.</p><p>However, With the burn rate and post-Merge rules, ETH’s total supply  by September 19, 2023, should be 120,889,249, or 4,625,000 ether less  than under previous PoW consensus rules. ETH supporters believe that  similar to Bitcoin’s halving characteristics, the rule, as mentioned  earlier, changes will make Ether harder than traditional sound money, or  as proponents call it these days, ‘ultrasound money.’</p><h2 id="header-3">Ethereum’s Price May Have Taken a Hit</h2><p><em>“People may have expected that a successful Ethereum Merge event  would lead to a price increase, but the price fell by 10% over the past  week,”</em> says Austin Kimm, Director of Strategy &amp; Investments at the MetaFi ecosystem Choise.com. <em>“This  comes as no surprise. The Merge’s success was predetermined. Markets  always price in what they anticipate and overreact when it does not  occur. Consider the recent drop in all stocks and cryptocurrencies when  inflation in the United States was only 0.2% higher than expected. As a  result, a successful Merge was already assumed and resulted in no price  increase.”</em></p><p>This was then followed by comments from the SEC that after the Merge,  Ethereum is now a security since people will be able to earn on other  people’s actions. This did take the market a little by surprise, and  with no other good news on the horizon, the price has taken a bit of a  hit.</p><p>Read full article <a href="" rel="noopener noreferrer nofollow">https://crypto.news/ethereum-completes-the-merge-upgrade-has-it-affected-the-networks-inflation/</a></p>

Austin Kimm, Director of Strategy & Investments at Choise.com for Crypto.news: Ethereum Completes the Merge Upgrade - Has It Affected the Network’s Inflation? 

Austin Kimm, Director of Strategy & Investments at Choise.com for Crypto.news: Ethereum Completes the Merge Upgrade - Has It Affected the Network’s Inflation?

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