Ethereum’s Merge will be significant — here’s why
Published in
4 min readApr 12, 2022
Ethereum is inching closer towards its most significant event ever, the merger of the current Ethereum mainnet with its beacon chain proof-of-stake system (PoS), an event known as The Merge.
The Merge is significant because:
- It marks the end of Ethereum as a proof-of-work system and transitions it towards a more eco-friendly proof-of-stake system, cutting electricity use by ~99%
- It will cut ETH issuance rate by almost 75%-90% — from 5.4M to 0.5M ETH annually, the equivalent of 3 Bitcoin halving events
Since the price of ETH is determined by demand and supply factors, let us analyse what could happen when these events unfold.
More institutions can get involved in ETH staking
Institutions are extremely concerned about the heavy use of electricity when it comes to cryptocurrency mining. Many have put off heavy investments in cryptocurrencies as they go against ESG policies.
