One Year After Ethereum Merge
CryptoRankDuring this period, 980 366 Ethereum coins were burned, and 680,434 were mined. As a result, the total Ethereum supply decreased by 300K coins, or -0.25%.
If the transition had not happened, the supply would have increased by almost 4.8M coins. This would have made Ethereum inflationary, which could have negatively impacted its price.
The green mission was successful as electricity consumption and carbon emissions decreased by 99.9%.
However, Ethereum's price has not been all smooth sailing. The deflationary model suggests an increase in the asset's value, but its year-over-year increase was only 10.8% compared to Bitcoin's 30%.
Bitcoin has performed better in the bear market, but there is still time for altcoins.
Liquid Staking has seen significant growth as it allows users to receive a liquid token in exchange for staked ETH. Users who don't have enough ETH to run their own node (32 ETH) can turn to Liquid Staking protocols.
According to Defillama, the cost of staked ether from Liquid Staking providers has reached values of nearly $20B. Currently, Lido holds the majority of the market with 72%. However, such dominance could threaten network decentralization. Other protocols are proposing a 22% limit for each validator.
Additionally, Layer 2 solutions are evolving. In the last year, we have seen the launch of Base, zkSync, StarkNet, and many other blockchains. All of them address scalability, security, and decentralization.
Overall, the move to Proof-of-Stake has benefited Ethereum, and its goals have successfully been achieved. However, there is still a lot of work to be done to address the blockchain's shortcomings. The next major development milestone will be the Cancun / Denver EIP.
Disclaimer: This post was independently created by the author(s) for general informational purposes and does not necessarily reflect the views of ChainRank Analytics OÜ. The author(s) may hold cryptocurrencies mentioned in this report. This post is not investment advice. Conduct your own research and consult an independent financial, tax, or legal advisor before making any investment decisions. The information here does not constitute an offer or solicitation to buy or sell any financial instrument or participate in any trading strategy. Past performance is no guarantee of future results. Without the prior written consent of CryptoRank, no part of this report may be copied, photocopied, reproduced or redistributed in any form or by any means.
