Related Reading: Understanding Ethereum's Upgrade: Latest Roadmap & Common PoS Transition Misconceptions
On July 7, the Ethereum blockchain successfully conducted its second test transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on the Sepolia testnet. With two merger tests completed, only one final rehearsal on the Goerli testnet remains before the official Merge.
Sepolia's successful test brings Ethereum closer to its long-awaited upgrade, though an exact timeline remains unconfirmed. Vitalik Buterin and core developers have consistently indicated a 2025 launch.
Ethereum's Three-Phase Upgrade Nears Midpoint
Ethereum's evolution toward a scalable, eco-friendly "2.0" version hinges on three phases:
- Beacon Chain: Launched in December 2020, this PoS chain allows users to stake ≥32 ETH to become validators.
- The Merge: Transitioning the mainnet from PoW to PoS by merging it with the Beacon Chain.
- Shard Chains: Post-Merge scalability solutions via parallel chains.
As of July 7, 405,782 active validators have staked 12.94 million ETH (10.5% of circulating supply), a record high. Yet, daily staking volumes have dipped since May—raising questions about waning enthusiasm or cautious optimism ahead of the Merge.
Incentivizing Users During the Transition
ETH’s deflationary mechanisms aim to retain users:
- EIP-1559: Burns base fees, reducing supply. Over 2.51 million ETH burned since August 2025.
- Staking Rewards: Locking ETH decreases market liquidity, potentially boosting value.
However, bear market pressures and validator risks (e.g., technical hurdles, locked assets) may explain declining daily staking. Analysts note:
"Uncertainty around post-Merge security and market volatility drives观望 behavior."
Liquid Staking Platforms Mitigate Barriers
Platforms like Lido Finance and Rocket Pool enable staking without requiring 32 ETH or technical expertise:
| Platform | Key Feature | Risk Consideration |
|------------------|--------------------------------------|----------------------------------|
| Lido | Issues stETH (1:1 pegged) | 10% fee on rewards |
| Rocket Pool | Decentralized mini-pools (16 ETH) | Requires RPL token collateral |
| StakeWise | Dual-token (sETH2/rETH2) rewards | Complex derivative exposure |
FAQ Section
Q1: When will Ethereum’s Merge happen?
A: Expected in 2025 after the final Goerli test.
Q2: Can I unstake ETH immediately after the Merge?
A: No—withdrawals will be enabled in a subsequent upgrade.
Q3: Why use liquid staking platforms?
A: They offer liquidity via tradable tokens (e.g., stETH) while earning rewards.
👉 Explore ETH staking strategies for optimal returns.
Final Note: The Merge’s success hinges on balancing technical precision with community trust. Stake wisely, and stay informed!