The Ethereum Merge is a network update to transition Ethereum from proof of work (PoW) to a proof-of-stake (PoS) consensus mechanism. A 99% reduction in energy costs of processing Ethereum transactions was expected. The merge transitioned operations off the Ethereum Mainnet to the new Ethereum Beacon Chain.
While the Merge has many benefits for Ethereum itself, the biggest beneficiary is the planet. As CNBC notes, the Merge is great for the environment because proof-of-stake validation uses over 99% less energy than proof-of-work validation.
“The merge will definitely make Ethereum more secure,” says Gorbunov. After the merge, the required initial investment to validate transactions on the blockchain would cost around $55,000 or 33 ETH, he says.
After the merge, the wealth of stakers — not computing power — will drive the network forward. As a result, the biggest owners, including custodians, could gain outsize sway in the Ethereum ecosystem, a move away from the decentralized ethos that so many cryptocurrency proponents value.
Customers are not required to take any action for the merge. Your staked ETH will not be available to unlock immediately after the merge and cannot be transferred or sold as it is not a tradable token. Visit cbETH Intro to learn more. Confirmation requirements will temporarily increase from 14 to 85 after the Merge.
So it shouldn't matter whether you get going before or after The Merge, but you will probably be better off the earlier you get started. On that note, you should dip a toe in Ethereum's waters as soon as you are able, and double down on your investment when prices are low.
The short answer? You do not have to do anything as an ETH owner to prepare your wallet or your tokens for the Merge. The Merge will actually mean no change for your tokens. Before we go into more details about the (non) effects of the Merge on your ETH, let's briefly dive into what the Merge is.
The Merge should not significantly increase Ethereum's scalability, as the introduction of shards, which split a blockchain into smaller sections, should take place this year. When sharding is complete, it will supercharge the speed of ETH, allowing 100,000 transactions a second, up from the current level of just 25.
Ahead of a years-in-the-making upgrade to the ethereum blockchain, the token ether has been outperforming bitcoin in 2022 by a wide margin. The so-called merge will result in much more energy-efficient transactions. Some market experts say the real upside price momentum is set to come after the merge.
Ether was last down 5.6% to $1,501.88, after falling as low as $1,459.00 earlier, according to Coin Metrics. Traders had expected to see a decline in the price following the transition late... Since Sept. 15, the date the merge was completed, to Tuesday, ether is down 15.2%.
What are the risks and flaws of the Ethereum merge? One of the foremost concerns regarding the Merge is that of centralization. Another potential concern is the risk of scams, as the general public may not be aware of how the Merge works.
The Merge made the Ethereum blockchain faster, more scalable and more efficient. This highly anticipated event had driven up the hype among investors, raising enthusiasm and causing the price of ETH to soar just before the actual Ethereum Merge since its lows in June 2022.
Conclusion: Yes, Ethereum Can Reach $100K
The main reasons behind this are the increasing use of Ethereum in the world of digital bonds, real estate, and government and central bank usage of the blockchain network on a state level.
However, there are necessary conditions for Ethereum to reach a value of $10,000. One crucial factor would be the continued restoration of investors' trust in the crypto market, which needs to be widespread to establish a conducive atmosphere for Ethereum's substantial and sustained growth.
Assuming these numbers, to be a millionaire you will need: Worst case scenario: 39 ETH or $82,000 at current prices. Conservative Model: 29 ETH or $61,355 at current prices. Aggressive Model: 18 ETH or $38,243 at current prices.
Ethereum could reach $20,000 by 2025 according to a Finder's panel. Ethereum has since been gaining momentum, starting out at $1,000 at the beginning of the year and reaching an all time high of $4,196.63, according to Coin Metrics.
It's important to note here that Ethereum losing the entirety of its value is highly unlikely, and the same goes for other popular coins like Bitcoin. We've seen many smaller coins drop to zero, especially those with a very short history in the market.
Ethereum Supply is at a current level of 120.21M, down from 120.21M yesterday and up from 119.38M one year ago. This is a change of -0.00% from yesterday and 0.69% from one year ago.
ETH Gas Fees After The Merge
The Merge did not lower gas fees directly. There was nothing built into the technical upgrades of The Merge that would specifically lower fees. However, what it did accomplish was to create the technical environment necessary for future gas optimizations.
The EF said the emergence of Ethereum 2.0 will not be a panacea for lower gas fees as the upgrade is a change of consensus mechanism, not an expansion of network capacity, and will not result in lower gas fees. "Gas fees are a product of network demand relative to the network's capacity.
To address this, Ethereum created a new pricing system called EIP-1559 that sets a "base fee" to keep gas prices more predictable. This way, you won't be as likely to get hit with a surprise spike in fees when the network is busy.
Ethereum Foundation clarifies that the upcoming Merge upgrade will not reduce gas fees.
However, regardless of ETH becoming the number one crypto, a report by VanEck said that the token could reach $50,000 in 2030. In the first six months of 2023, ETH has risen by around 45%, which is quite impressive.