The Ethereum (ETH) Merge: A Year of Changes
It has been one year since the Ethereum (ETH) network underwent a whole lot of transformation known as the Merge. This transition from proof-of-work (PoW) to proof-of-stake (PoS) has brought about plenty of notable changes in the world of Ethereum.
Since the implementation of the Merge, approximately 980,000 Ethereum (ETH) have been burned, according to Sassal, a prominent figure in the Ethereum (ETH) community. The burning of Ethereum (ETH) occurs through the London hard fork upgrade, which introduced a fee-burning mechanism. Transaction base fees are now instantly burned after a transaction is processed. This deflationary mechanism aims to lower the overall supply of Ether.
Reduction in Supply
Because of these burning mechanisms and other factors, the Ethereum (ETH) supply has dropped by 0.25% since the Merge. This reduction in supply contributes to making Ether a scarcer asset over time.
A Shift in Network Security
The transition to PoS has likewise led to a change in how the Ethereum (ETH) network is secured. Validators now play a critical role in securing the network by staking their Ethereum (ETH), whereas miners were previously in charge of this task under the PoW consensus. Since the Merge, over 11.6 Million Ethereum (ETH) has been staked by validators to secure network security and earn passive income in return.
ARK Invest’s Involvement
ARK Invest is one of the entities that have participated in staking Ethereum (ETH) since the Merge. This demonstrates growing interest and confidence from institutional investors towards Ethereum (ETH) and its new consensus model.
Hot Take: The Evolution of Ethereum
The past year has been transformative for Ethereum (ETH), with whole lot of changes resulting from the Merge. The burning of Ethereum (ETH), reduction in supply, and the shift to PoS have all contributed to the evolution of this leading digital currency. As Ethereum (ETH) continues to adapt and improve its network, it remains a prominent player in the cryptocurrency space.
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