The long-awaited Ethereum Merge is finally here, with less than 14 hours remaining at the time of writing. This event marks one of the most pivotal moments in Ethereum's history. Below, we break down core metrics and data trends to highlight critical aspects before and after the Merge.
ETH Staking Post-Merge
The Merge transitions Ethereum from Proof of Work (PoW) to Proof of Stake (PoS). Miners will no longer serve as validators; instead, the network will be maintained by stakers who lock up ETH.
Key Metrics:
- Total Staked ETH: Over 13.7 million ETH deposited into the Beacon Chain contract, making it the largest single ETH holder in the network.
- Liquidity Breakdown: 65% of staked ETH is liquid, while 35% is non-liquid.
- Active Validators: Approximately 426,000 validators and 80,000 depositors.
ETH Staking Distribution
A small number of entities dominate staked ETH allocations:
- Lido DAO leads with 31% share, driven by integrations like Aave.
- Unmarked validators hold 23%.
- Centralized exchanges (CEXs) like Coinbase, Kraken, and Binance collectively account for nearly 30%.
👉 Explore ETH staking trends further
Client Diversity Risks
Node reliance on a single client poses systemic risks:
- Execution Layer: Geth remains the dominant client. A critical bug could penalize all validators using it.
- Consensus Layer: Improved diversity, but challenges persist.
Impact on ETH Price and Market
Post-Merge price speculation is rampant:
- ETH gained 2.4% in the past week, while BTC rose 7.9%.
- Debates continue on whether ETH could overtake BTC in market cap.
Miner Fallout:
PoW miners face obsolescence. Some may attempt PoW-ETH forks, but long-term viability is questionable. Validators, however, stand to benefit from higher rewards.
Ethereum as a Deflationary Asset
- Threshold: Base fees exceeding 15.43 Gwei could make ETH supply deflationary post-Merge.
- Enterprise Perception: Improved scalability and privacy may attract broader business adoption.
DeFi and NFT Ecosystem Growth
The Merge’s energy efficiency boost (99.95% reduction) could accelerate adoption:
- DeFi/NFT Benefits: Cheaper, faster transactions will enhance usability.
- NFT Projects: Commemorative collections like EPICS // MERGE celebrate the event with on-chain generative art.
👉 Learn more about Ethereum's upgrades
FAQ Section
Q: Will ETH become deflationary immediately after the Merge?
A: Only if base fees consistently exceed 15.43 Gwei.
Q: What happens to PoW miners?
A: They’ll need to transition to other networks or PoS validation.
Q: How does client diversity affect security?
A: Over-reliance on one client increases network vulnerability.
Q: Will DeFi fees drop post-Merge?
A: Yes, reduced energy costs should lower transaction fees over time.