• About Us
  • Privacy Policy
  • Contact Us
Coinpress
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
coinpress
No Result
View All Result
Home Ethereum

Merge Aftermath: Ethereum Fees, Supply, And The Network At Large

by Press Release
October 25, 2022
in Ethereum
0
Merge Aftermath: Ethereum Fees, Supply, And The Network At Large
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter


The Ethereum Merge was one of the most anticipated upgrades in the history of crypto. Once the upgrade was successfully completed, Ethereum moved from being a proof of work (PoW) blockchain since inception to being a proof of stake (PoS) blockchain. Naturally, this move had some implications for the network and its users. 

A Better Ethereum

There is no doubt that the move to proof of stake made Ethereum a better blockchain than before. The first thing noticeable about the blockchain following the Merge was how little energy was now required to run the blockchain.

The Merge saw ETH’s energy consumption decline by more than 95% because it no longer required super-charged computers to solve complex equations to confirm transactions. With proof of stake, the energy and hardware requirement was no longer as high as it was before.

Then comes the ETH supply. Previously, the EIP-1559 had been implemented which had started the ETH burn. This burn took about 30% of newly issued ETH out of supply, and the Merge has helped accelerate Ethereum’s journey to become a truly deflationary token. Since issuance is very low now, in times of high network activity, the network sees more ETH burned through fees than those being issued.

Last but not least is the fees on the network. It had been saying before that the Merge would not really have much of an impact on ETH fees but fees have declined significantly on the blockchain. Gas fees are now more than 75% lower than they were earlier in the year. However, given that fees were already on a decline before the Merge due to the crypto winter, it is possible that this is just a happy coincidence for the network.

ETH price resting above $1,300 | Source: ETHUSD on TradingView.com

Other Implications For ETH

One thing that was unexpected following the Ethereum Merge was the fact that regulators began to change the way they looked at the digital asset. Previously, regulatory bodies such as the SEC have said that ETH was not a security but after it became a proof of stake network, there were talks of the regulatory watchdog changing its stance and trying to figure out if Ethereum could be classified as a security. If so, then it would be subject to the same rules as other securities in traditional finance.

Then there are the sanctions that have followed such as the one on the crypto mixer Tornado Cash. Some have argued that the move to proof of stake makes it easier for these sanctions to be enforced. For example, some decentralized finance (DeFi) protocols such as Oasis have been blocking transactions from wallets associated with Tornado Cash. Back in August, Ethermine, the largest ETH miner, was said to have stopped processing all blocks that contained Tornado Cash transactions.

The Ethereum Merge is barely a month old at this point, so only time will tell if this was good in the long run or not. However, the market is currently focused on the price of the digital asset which has not seen much positive movement since the Merge and continues to trade just above $1,300.

Featured image from Tarlogic, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…





Source link

READ ALSO

Ethereum Is Not Slow Because Of Geth Client

Ethereum Clients More Diversified Than Bitcoin, Is This Good?

Tags: aftermathEthereumFeeslargeMergenetworksupply

Related Posts

Ethereum Staking Momentum Falling, What’s Going On?
Ethereum

Ethereum Is Not Slow Because Of Geth Client

September 27, 2023
Ethereum Clients More Diversified Than Bitcoin, Is This Good?
Ethereum

Ethereum Clients More Diversified Than Bitcoin, Is This Good?

September 26, 2023
Ethereum Generates Over $10 Billion In Revenue In 7 Years
Ethereum

Ethereum Generates Over $10 Billion In Revenue In 7 Years

September 26, 2023
Ethereum Average Fees Has Hit A New 2023 Low: Data
Ethereum

Ethereum Average Fees Has Hit A New 2023 Low: Data

September 25, 2023
Ethereum Staking Momentum Falling, What’s Going On?
Ethereum

Ethereum Staking Momentum Falling, What’s Going On?

September 23, 2023
Ethereum Investors Should Keep This Important Date In Mind
Ethereum

Ethereum Investors Should Keep This Important Date In Mind

September 22, 2023

POPULAR NEWS

MonoDX Discloses the Future of Crypto Trading Automation

MonoDX Discloses the Future of Crypto Trading Automation

September 1, 2022
ChatCrypto develops AI-Powered Blockchain Solution to Reform the Cryptocurrency Market

ChatCrypto develops AI-Powered Blockchain Solution to Reform the Cryptocurrency Market

April 4, 2023
Crypto Funds’ Bitcoin Holdings Rise as Investor Demand Rebounds

Crypto Funds’ Bitcoin Holdings Rise as Investor Demand Rebounds

April 4, 2023
Be The First To Know About Ecoto

Be The First To Know About Ecoto

April 28, 2021
Avalon-WM Review  – Where Every Online Trader Should Trade

Avalon-WM Review – Where Every Online Trader Should Trade

February 19, 2021

EDITOR'S PICK

Avalanche Blockchain Had 1,500% Transactional Growth in 2022: Nansen

Avalanche Blockchain Had 1,500% Transactional Growth in 2022: Nansen

February 15, 2023
Bitcoin Supply on Exchanges Slides to Three-Year Low

Bitcoin Supply on Exchanges Slides to Three-Year Low

June 14, 2023
Bitcoin BTC Price Holds Firm Above $30K, Ether ETH Price Hovers Near $1.9K Ahead of CPI, Shapella Upgrade

Bitcoin BTC Price Holds Firm Above $30K, Ether ETH Price Hovers Near $1.9K Ahead of CPI, Shapella Upgrade

April 11, 2023
Whale Ratio Continues To Decline

Whale Ratio Continues To Decline

January 2, 2023

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • SEC’s Gensler Throws Crypto Punches, Dodges Bitcoin ETF Query in Congressional Hearing
  • SEC Begins Consideration of Franklin, Hashdex Crypto ETFs, Delays Decision on VanEck, ARK Ether ETFs
  • U.S. Department of Justice Opposes Sam Bankman-Fried's Latest Move for 'Temporary Release'
  • Sam Bankman-Fried’s Biggest Grift? His ‘Best In Class’ Exchange
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 coinpress.media

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 coinpress.media