Ethereum celebrates first anniversary of ETH Merge with 99.9% drop in energy usage
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- Ethereum network’s energy usage reduced by 99.9% after its transition from proof-of-work to proof-of-stake through the Merge.
- Ethereum developers included EIP-7514 in its Dencun upgrade to work on a better validator reward scheme for stakers.
- ETH tokens worth more than $488 million at current prices have been burned since the Merge and the total supply reduced by 0.25%.
The great Ethereum Merge completes its first anniversary on Friday, September 15. The network’s energy usage has dropped drastically over the past year since Ethereum’s transition away from proof-of-work to proof-of-stake.
The blockchain network’s core developers concluded their “all core devs” call early on Friday, with some key changes like the inclusion of a new Ethereum Improvement Proposal, EIP-7514.
Ethereum Merge completes year of dramatic decline in energy usage
The Ethereum Merge, the transition from proof-of-work to proof-of-stake, reduced energy usage by 99.9% on the blockchain. The Merge occurred on September 15, 2022, and since then over 300,000 ETH worth $488 million has been burned. Based on data from Ultrasound.money, at the current rate Ethereum’s supply has reduced 0.25% in a one-year time frame.
ETH supply since Merge
The Merge marked a key upgrade in the largest altcoin network’s blockchain. Ethereum core developers concluded the “All core devs” call early on Friday. Developers made progress on discussing the next important update in Ethereum, called Dencun.
Developers have included EIP-7514 in the Dencun upgrade to slow down the growth of the ETH staking rate. The concept is to utilize the time to design a better validator reward scheme.
The next discussion is scheduled for September 28.
Ethereum price since the Merge
Ethereum price remained nearly unchanged since the Merge. ETH price on September 15, 2022 was $1,635. At the time of writing, ETH is exchanging hands at $1,629 on Binance. The altcoin’s price did not undergo major changes a year after the Merge. However, the impact on metrics like energy usage and supply is more significant.
ETH holders had hopes riding on a dramatic price increase a year past the Merge. However, macroeconomic factors and crisis events in crypto like lawsuits and bankruptcies have played a role in the inflow of capital to the chain.
