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Tag: Ethereum merge

  • Ethereum ($ETH) Merge: What is it and everything you need to know

    Ethereum ($ETH) Merge: What is it and everything you need to know

    As Ethereum is steadily approaching the transition to a Proof-of-Stake mechanism, one notable thing that has changed, aside from further protocol development, has been the change in terminology.

    We have already covered Ethereum 2.0 extensively in one of our ongoing blogs where we go in-depth on everything you need to know about Ethereum’s transition to PoS:

    Let’s take a closer look at the rebranding from Ethereum 2.0 to the Ethereum Merge, as well as go over the most recent developments in Ethereum’s roadmap as of May 2022.

    Check out our latest video- Ethereum Merge: ALL you need to know (including ETHPOW)

    Ethereum Merge: ALL you need to know (including ETHPOW)

    And check out our video- Ethereum Merge: Things you don’t (but need) to know as an investor

    The Ethereum Merge: Why the shift from Eth2.0?

    The term “Eth2.0” was retired in early 2022 to avoid confusion and scams, and to better reflect Ethereum’s evolution—not replacement. The Merge, completed in September 2022, unified Ethereum’s original execution layer with the Beacon Chain’s Proof-of-Stake consensus. By 2025, this rebranding has proven prescient: Ethereum’s roadmap has expanded far beyond the original Eth2.0 vision, with Layer 2 rollups, proto-danksharding, and modular scaling now driving innovation. The shift in terminology helped clarify that Ethereum remains one chain, continuously upgraded—not split or replaced.

    ETH Merge is a huge success!

    On 15th September 2022 at 06:42:42 UTC at block 15537393, the Merge was completed.

    Missed our historical LIVE Merge party? Check it out here!

    Ethereum Merge Party – Watch the Merge live!

    Ethereum Post-Merge: Where Things Stand in 2025

    Since the successful Merge on 15th September 2022, Ethereum has fully transitioned to Proof-of-Stake, eliminating mining and reducing energy consumption by over 99%. The focus has shifted from testing Merge readiness to scaling and optimizing the network. Key milestones since the Merge include:

    • Staking Growth: Over 30 million ETH is now staked, with thousands of validators securing the network.
    • Scalability Upgrades: Proto-danksharding (EIP-4844) was implemented in late 2024, significantly reducing Layer 2 fees and paving the way for full sharding.
    • Layer 2 Expansion: Rollups like Optimism, Arbitrum, and zkSync have seen explosive growth, handling the majority of Ethereum transactions.
    • Institutional Adoption: Ethereum’s energy-efficient design and predictable monetary policy have attracted major financial institutions and enterprise use cases.

    The Merge is no longer a future milestone—it’s the foundation for Ethereum’s next phase: modular scalability, global adoption, and sustainable infrastructure.

    Why the Ethereum Merge Still Matters to Crypto Traders in 2025

    Although the Merge was completed nearly three years ago—on 15th September 2022—it continues to influence Ethereum’s trading dynamics in significant ways. Here’s why it remains relevant to traders today:

    Reduced ETH Supply and Market Scarcity

    • The Merge reduced ETH issuance by approximately 90%. Combined with EIP-1559’s fee-burning mechanism, Ethereum has become deflationary during periods of high network activity.
    • This scarcity has strengthened Ethereum’s position as a store of value, attracting long-term investors and institutional interest.

    Staking Rewards and Yield Opportunities

    • ETH holders can earn staking rewards by locking up their tokens. As of August 2025, staking yields range between 4% to 6%, depending on network conditions.
    • Traders now consider staking returns when evaluating ETH’s opportunity cost relative to other assets.

    Layer 2 Growth and Transaction Efficiency

    • The Merge enabled scalability upgrades such as proto-danksharding (EIP-4844), which significantly lowered Layer 2 transaction fees.
    • A majority of ETH trading now occurs on rollups like Arbitrum, Optimism, and zkSync, offering faster execution and lower costs.

    Environmental Sustainability and Institutional Access

    • Ethereum’s energy consumption dropped by more than 99% post-Merge, making it one of the most environmentally sustainable blockchains.
    • This shift has made ETH more appealing to ESG-conscious investors and funds that previously avoided energy-intensive assets.

    Price Behavior and Market Sentiment

    • ETH’s price has shown resilience, supported by reduced sell pressure, staking lockups, and expanding utility across DeFi and NFTs.
    • Traders monitor staking inflows, validator performance, and Layer 2 activity as key indicators for ETH price trends.

    Since the Ethereum Merge on 15th September 2022, ETH’s price trajectory has been shaped by a mix of protocol-level changes, macroeconomic factors, and evolving market sentiment. Here’s a breakdown of how prices have responded and what traders are watching now:

    Initial Reaction and Short-Term Volatility

    • In the hours following the Merge, ETH saw a modest price increase, briefly peaking above US$1,640 before settling below US$1,600.
    • Traders were cautious, anticipating potential forks or technical disruptions, which kept early momentum subdued.

    Medium-Term Consolidation and Staking Dynamics

    • As staking rewards became more accessible and the supply of ETH decreased due to reduced issuance and fee burning, ETH entered a period of steady accumulation.
    • By mid-2023, ETH had stabilized in the US$1,800–US$2,200 range, supported by growing validator participation and reduced sell pressure.

    Long-Term Growth and Institutional Interest

    • The implementation of proto-danksharding in late 2024 significantly lowered Layer 2 transaction costs, boosting network activity and reinforcing ETH’s utility.
    • By August 2025, ETH is trading above US$3,000, driven by deflationary pressure, staking lockups, and increased adoption across DeFi, NFTs, and enterprise applications.

    Key Price Drivers in 2025

    Environmental Appeal: Ethereum’s energy-efficient design has made it a preferred asset for ESG-focused investors.

    Deflationary Supply: With issuance down and EIP-1559 continuing to burn fees, ETH’s circulating supply has declined, supporting upward price pressure.

    Staking Yield: ETH staking yields remain attractive, encouraging long-term holding and reducing market liquidity.

    Layer 2 Ecosystem: Rollups now handle the majority of Ethereum transactions, improving user experience and expanding use cases.

  • Ethereum Merge is Coming, Is This the End of Ethereum Killers?

    Ethereum Merge is Coming, Is This the End of Ethereum Killers?

    The Ethereum network is said to be the fastest and most scalable blockchain after the Merge in September, effectively cementing its position as the front-runner of smart-contract networks. What will this mean for other popular competing layer-1 blockchains known as “Ethereum Killers?” If you are holding any of these coins, you might want to consider its future prospects.

    The Ethereum Merge in September

    Ethereum founder Vitalik Buterin addressed at the Ethereum Community Conference in Paris that the Ethereum network will hit the 55% roadmap completion level after its much-anticipated “Merge” in September. The Merge will mark the beginning of Ethereum’s proof-of-stake upgrade, potentially enabling the network to process 100,000 transactions per second (tps), according to Buterin, which is significantly higher than even centralized financial services like Visa and Mastercard.

    For the longest time, the biggest problem that has been plaguing Ethereum is scalability. In its current state, Ethereum can only process 12 to 25 tps with an average confirmation time of around six minutes. As a result, the network gets congested, leading to extremely high gas fees. To address that problem, the Merge involves many protocol changes that would allow users to enjoy fast transactions and low gas fees. Buterin has even given each of these planned upgrades rhyming names which he calls the “merge”, “surge”, “verge” and “purge.“

    • Merge
      • Refers to combining the Ethereum mainnet with the proof-of-stake beacon chain, also known as EIP-3675.
    • Surge
      • Refers to the addition of Ethereum sharding, a scaling solution which will further enable cheap layer-2 blockchains and lower the cost of rollups or bundled transactions, making it easier for users to operate nodes that secure the Ethereum network. This reduces congestion on the main chain by distributing traffic to 64 shard chains.
    • Verge
      • Refers to the implementaion of “Verkle trees” (a kind of mathematical proof) and “stateless clients”, aimed at making the network more decentralized. These features will allow users to become network validators without having to store large amounts of data on their nodes.
    • Purge
      • Refers to the removal of historical data in a bid to streamline the network, also known as EIP-4444, a proposal focused on storing said historical data in execution clients such as The Graph, BitTorrent and block explorers, since relying to store everything on existing nodes can hamper scalability.

    What are “Ethereum Killer” Blockchains?

    “Ethereum Killers” refer to Ethereum’s competing layer-1 blockchains, namely Solana, Avalanche, Polkadot, Algorand, and Cardano. They inherited the killer name because they offer similar features to Ethereum but at significantly lower costs and faster speed.

    Ethereum Killer coins have been a very popular asset to investors looking for an alternative network to Ethereum. Smart-contract platforms have been dominating the market cap in the crypto space. According to Coingecko, it is the second highest crypto category by market cap, just behind the Ethereum ecosystem.

    What will happen to “Ethereum Killers” after Merge in September?

    If Buterin is able to deliver what he promised, then Ethereum will most certainly be the front-runner of smart-contract networks. People will look to Ethereum to being the primary platform for DApp development, DeFi activities, NFT minting and marketplace and more.

    Although Ethereum Killer coins have been pumping recently due to bullish sentiment surrounding Ethereum and its long-awaited Merge, communities are speculating whether this is just hype as competing blockchains of Ethereum will no longer have competitive advantage in terms of speed and scalability. Even until now, none of them have been able to dethrone Ethereum from its number two spot by market cap. The upcoming merge will only propel Ethereum upward, but that is if Buterin delivers what he promised. He stated that they will soon test the merge on Ropsten (Ethereum’s testnet).

    The largest future problem for Ethereum will most likely remain to be scalability. Although the new system will be faster, it is unlikely to solve the issue of high gas fees immediately since network demand is likely to rise as efficiency increases. But that is not to say that gas fees will forever be expensive on the Ethereum blockchain. But until Ethereum is able to achieve high scalability, Ethereum Killer blockchains remain to be viable alternatives for fast transactions and low gas fees. We will just have to wait and see in September.