Ethereum

Cryptocurrency

Ethereum 2.0

Merge

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 <p class="paragraph">One year ago, on September 15, Ethereum (ETH) went through a major update that changed the Ethereum Network in its roots by ultimately moving from a Proof of Work (PoW) to a Proof of Stake (PoS) system.</p> 
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 <p class="paragraph">This update was called ‘The Merge’, as it merged the Beacon Chain with Ethereum’s mainnet, resulting in the Ethereum 2.0 network, which is 99% less costly to keep than the old network with massive consumption of energy and electronic device waste.</p> 
 <p class="paragraph">With a lower maintenance cost for validators, The Merge also decreased validators’ block rewards from supply inflation, dramatically impacting ETH’s tokenomics for what enthusiasts started calling “ultra-sound money”.</p> 
 <p class="paragraph">Together with the London Upgrade — that happened one year before The Merge, in August 2021 — these changes can be seen in economic <a rel="dofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a>, such as the price ETH would trade at if Ethereum reaches its all-time high market cap.</p> 
 <h2 class="wp-block-heading" id="h-eth-tokenomics-data-since-the-merge">ETH tokenomics data since The Merge</h2> 
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 <p class="paragraph">Data retrieved by <strong>Finbold</strong> on September 15 from <em>ultrasound.money</em> shows that 980,541 ETH were burned in the 365 days since The Merge.</p> 
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  <img decoding="async" loading="lazy" width="1024" height="332" src="https://cdn.thebittimes.com/images/2023/09/15/a2ee92599e09d30975c78c32440afd5b.webp" alt="Ethereum economic data since The Merge. Source: ultrasound.money" class="wp-image-128626" srcset="https://cdn.thebittimes.com/images/2023/09/15/a2ee92599e09d30975c78c32440afd5b.webp 1024w, https://cdn.thebittimes.com/images/2023/09/15/a2ee92599e09d30975c78c32440afd5b.webp 300w, https://cdn.thebittimes.com/images/2023/09/15/a2ee92599e09d30975c78c32440afd5b.webp 768w, https://cdn.thebittimes.com/images/2023/09/15/a2ee92599e09d30975c78c32440afd5b.webp 1536w, https://cdn.thebittimes.com/images/2023/09/15/a2ee92599e09d30975c78c32440afd5b.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Ethereum economic data since The Merge. Source: <em>ultrasound.money</em>
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 <p class="paragraph">Moreover, as only 680,724 ETH were issued through validators’ block subsidy, Ethereum’s circulating supply decreased by close to 300,000 ETH in the period. Resulting in a 0.25% deflation due to the mentioned updates.</p> 
 <h2 class="wp-block-heading" id="ethereum-price-analysis">Ethereum price analysis</h2> 
 <p class="paragraph">Meanwhile, Ethereum is trading at $1,622 by press time. With approximately 10% in yearly gains after The Merge on September 15, 2022.</p> 
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   ETH 1-year price chart. Source: <strong>Finbold</strong>
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 <p class="paragraph">This positive outcome for Ethereum comes amid a mostly bearish sentiment in the cryptocurrency market in the last year, which makes many analysts believe that crypto investors are yet to see the long-term effects of The Merge for the second largest crypto by market cap.</p> 
 <p class="paragraph"><strong><em>Disclaimer</em></strong><em>: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/ethereum-merge-1-year-anniversary-4-key-insights-you-need-to-know-tbt62886.html">https://thebittimes.com/ethereum-merge-1-year-anniversary-4-key-insights-you-need-to-know-tbt62886.html</a></p>

Ethereum Merge 1-year anniversary: 4 key insights you need to know

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