Ethereum changed forever 3 years ago: This is what The Merge effect feels like today

On September 15, 2022, Ethereum shut down its mining machines and began a new phase in its evolution. 

That day, known as the day it was activated The Merge, marked the definitive step of the blockchain network toward a more efficient and sustainable model, without abandoning its ambition to continue being the engine of decentralized innovation. 

Three years later, the crypto ecosystem is still processing the implications of that decision. It wasn't a break with the past, but rather a reconfiguration of the present. 

As Bitcoin continues to demonstrate the robustness of Proof of Work (PoW) As a foundation for security and decentralization, Ethereum chose a different path: one that prioritizes energy efficiency and community participation. 

Today, with a lighter, more flexible network that's open to new layers of development, Ethereum is consolidating its position as a key player in the evolution of the crypto ecosystem, without losing sight of the foundations that made it possible.

Sep 15: The day Ethereum stopped mining ETH

Before The Merge, Ethereum shared the proof-of-work (PoW) model with Bitcoin, an architecture that has proven to be extraordinarily secure and resistant to attacks. In that system, miners compete to validate transactions using complex calculations, ensuring the integrity of the network. This dynamic, although demanding in terms of energy, has been the backbone of Bitcoin, the most powerful and decentralized cryptocurrency in the ecosystem. Ethereum, however, faced other challenges: its growing use as a platform for smart contracts and decentralized applications required a more scalable and sustainable solution.

Therefore, Ethereum's transition to proof-of-stake or Proof of Stake (PoS), which was launched with The Merge, was not a criticism of the PoW model, but rather a response to the specific needs of this blockchain network. 

For years, Ethereum developers worked on the Beacon Chain, a parallel network that would allow blocks to be validated without mining. The Merge was the fusion between that chain and the main network, a delicate technical process that ran seamlessly. Since then, validators have been chosen based on the amount of ETH they stake, reducing energy consumption by over 99% and eliminating the need for specialized hardware.

This change didn't alter Ethereum's essence as a decentralized network, but it did redefine its relationship with the environment. By abandoning mining, Ethereum opened up to new user profiles, more focused on participation than competition. And while mining remains fundamental to other networks—especially Bitcoin, where its role as a store of value and security shield remains intact—Ethereum demonstrated that evolution can take different paths without losing legitimacy.

The Merge transformed Ethereum into a sustainable and accessible ecosystem

The arrival of The Merge generated expectations and fears in equal measure. In the days leading up to it, the crypto market moved cautiously, aware that an update of such magnitude could have unpredictable effects. Some feared forks, technical errors, or vulnerabilities. Others saw the change as an opportunity to reposition Ethereum as a more attractive asset for institutional investors and hedge funds. ESG criteriaThe price volatility reflected that tension, but also the relevance of the moment.

Once the merger was completed, the impact was more narrative than immediate. There were no abrupt price jumps, but there was a shift in perception. 

Ethereum has stopped being a network that consumed large amounts of energy and has become a modern platform, aligned with the sustainability values that changing times demand. This transformation has attracted new players, from banks to investment platforms, who began including ETH in their portfolios for reasons beyond speculation.

In addition, the model of staking It democratized access to validation. Expensive equipment and competing for power were no longer required: all it took was holding ETH and trusting the protocol. This openness strengthened the bond between the network and its users, creating a more diverse and engaged community. 

Deflationary ETH: less emission, more value in each block

The London Hard Fork (EIP-1559), which was successfully implemented in August 2021, Ethereum started a deflationary path by implementing a automatic token burning system which removes part of the ETH in each transaction. 

With the arrival of The Merge, this change deepened: the network stopped paying miners and went from issuing about 13.000 ETH per day to just 1.600, further reinforcing the deflationary pressure on the cryptocurrency. 

“Previously, new ETH was issued from two sources: the execution layer (i.e., Mainnet) and the consensus layer (i.e., Beacon Chain). Since The Merge, issuance on the execution layer is now zero.”, said the Ethereum Foundation.

Although some miners were unhappy with abandoning the PoW model, Ethereum has established itself as a more efficient and sustainable platform with PoS. Less issuance means more scarcity, and in crypto, well-managed scarcity often translates into greater long-term value. 

Since The Merge, the price of ETH has appreciated by 280%, trading at around $ 4.600 dollars, actually. 

Ethereum Today: Between Layers, Withdrawals, and New Horizons

Since The Merge, Ethereum has continued to evolve steadily. In April 2023, the Ethereum upgrade Shanghai allowed users to withdraw their staked ETH, a key step in building trust in the new model. This long-awaited feature demonstrated that the network could offer flexibility without compromising security. From there, the ecosystem began to expand into new layers of innovation.

Layer 2 solutions, such as Arbitrum and Optimism, gained prominence by offering faster and cheaper transactions. These networks, built on Ethereum, allow for scaling without congesting the main chain. The result has been an explosion of decentralized applications, from exchanges to digital identity platforms, that leverage the infrastructure without suffering its limitations. Ethereum is becoming established at the heart of a modular system, where each layer serves a specific function.

At the same time, the ESG narrative consolidated. Ethereum became an example of how a decentralized network can adapt to the challenges of the 21st century. Investment funds, regulators, and companies began to look at crypto with a different perspective. It was no longer just about volatility and risk, but about responsible innovation. This perspective has allowed Ethereum to remain relevant in an increasingly competitive environment, where new chains are trying to gain ground.

Today, Ethereum is not just a cryptocurrency: it's a living, breathing platform, constantly evolving. Its roadmap includes improvements in privacy, scalability and governance.But most importantly, it has shown that change is possible, even in systems as complex as blockchain. The Merge was the starting point, but the journey is just beginning.

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Three years after The Merge

Thus, three years after The Merge, Ethereum has managed to consolidate itself as a technical and ethical pillar within the crypto world. Its shift to Proof of Stake was not an abandonment of decentralization, but a necessary response to address the scalability and sustainability challenges inherent to a global infrastructure. While Bitcoin continues to demonstrate the strength of mining as a security model, Ethereum is betting on new forms of participation that expand access and protect the environment.

In short, this variety in the technical approaches of blockchain networks strengthens the ecosystem as a whole. The coexistence of different architectures allows each network to fulfill a specific role, whether as a store of value, as is the case with Bitcoin, or a platform for smart contracts, like Ethereum.