The Ethereumย (ETH) Merge: A Year of Changes
It has been one year since the Ethereumย (ETH) network underwent a wholeย lotย of transformation known as the Merge. This transition from proof-of-work (PoW) to proof-of-stake (PoS) has brought about plentyย of notable changes in the world of Ethereum.
Burning ETH
Since the implementation of the Merge, approximately 980,000 Ethereumย (ETH) have been burned, according to Sassal, a prominent figure in the Ethereumย (ETH) community. The burning of Ethereumย (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 toย lower the overall supply of Ether.
Reduction in Supply
Becauseย ofย these burning mechanisms and other factors, the Ethereumย (ETH) supply hasย 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 Ethereumย (ETH) network is secured. Validators now play a critical role in securing the network by staking their Ethereumย (ETH), whereas miners were previously inย chargeย of this task under the PoW consensus. Since the Merge, over 11.6 Million Ethereumย (ETH) has been staked by validators to secure network security and earn passive income in return.
ARK Investโs Involvement
ARK Invest is one of the entities that have participated in staking Ethereumย (ETH) since the Merge. This demonstrates growing interest and confidence from institutional investors towards Ethereumย (ETH) and its new consensus model.
Hot Take: The Evolution of Ethereum
The past year has been transformative for Ethereumย (ETH), with wholeย lotย of changes resulting from the Merge. The burning of Ethereumย (ETH), reduction in supply, and the shift to PoS have all contributed to the evolution of this leading digitalย currency. As Ethereumย (ETH) continuesย to adapt and improve its network, it remains a prominent player in the cryptocurrency space.
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