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Ethereum: A Year After the Merge, How Has it Evolved?

Ethereum has undergone several changes since the Merge, with 980,000 ETH being burned and a fee-burning mechanism introduced. The network is now secured by validators, with over 11.6 million ETH staked. The number of validators has greatly increased, and despite a decrease in valuation, Ethereum has become more valuable. Traditional financial institutions are also showing interest in Ethereum.

Our analysis of the situation

It has been a year since the Merge shook the world of cryptocurrencies, and Ethereum - the mighty number two - has undergone some significant transformations. Buckle up as we take a look at the changes that have occurred in the world of Ethereum.

Down the Burning Path
In the aftermath of the Merge, the Ethereum community witnessed a fiery spectacle. Approximately 980,000 ETH were sent to the eternal bonfire as Ethereum transitioned from its proof-of-work (PoW) consensus to the shiny proof-of-stake (PoS). It seems that even the blockchain world can't resist the allure of a good blaze.

The London Hard Fork and a Flaming Mechanism
Prior to the Merge, Ethereum implemented a substantial upgrade called the London hard fork. This upgrade brought forth a rather intriguing fee-burning mechanism, where transaction base fees are promptly incinerated after each transaction is processed. It's almost poetic - every transaction leaving behind a smoldering trail of financial destruction.

Ether: Deflating with Attitude
With this burning mechanism in place, Ethereum aimed to make Ether a deflationary marvel. After all, who doesn't love a token that gradually disappears from circulation? Since the Merge, Ethereum's supply has gracefully shrunk by 0.25%. It's not much, but hey, every little reduction counts.

Validators: The New Guardians of the Network
Following the Merge, Ethereum put its trust in a new breed of heroes known as validators. These validators stake their ETH to secure the network and earn a nice slice of passive income. Over 11.6 million ETH has been staked, providing a cozy shield against digital villains. Among the top stakers are the likes of Lido DAO, an influential player holding 22.64% of the market. Even exchanges such as Coinbase, Binance, and Kraken have joined the staking frenzy. Who knew being a guardian could be so lucrative?

A Boon in Validator Population
Since the Merge, the Ethereum network has experienced a population explosion in the validator department. A whopping 362,000 new validators have joined the ranks, ready to defend the digital realm and reap the rewards. It's quite the squad they've assembled.

Valuation Woes and Hidden Value
Don't let Ethereum's slightly underwhelming 11% price increase from a year ago dampen your spirits. Sure, it's a far cry from the token's exhilarating all-time high of $4,891, but let's focus on the positives. Despite the bear market's icy grip, Ethereum has managed to increase its value in more ways than one.

Following the Merge, Ethereum's annual inflation rate dropped, adding a touch of fiscal elegance to the equation. Moreover, trading activity on Ethereum's layer-2 chains has skyrocketed, indicating that more souls are embracing the Ethereum ecosystem. It's like witnessing a grand digital migration to a land where decentralized wonders await.

The Rise of Traditional Instigators
As if all the above wasn't enough, Ethereum is now capturing the attention of the traditional financial (TradFi) giants. Cathie Wood's ARK Invest has recently filed to offer an Ethereum Spot ETF, causing ripples of excitement in the crypto domain. And ARK Invest is not alone; other institutions are eagerly lining up to offer Ethereum futures ETFs. It seems Ethereum's magic has cast its spell on the big players too.

As the world of cryptocurrencies continues to evolve, Ethereum stands its ground, weathering storms and blazing paths towards new horizons. Its journey since the Merge leaves little doubt that Ethereum remains vibrant, promising, and worthy of our attention.

Featured image from WAYA Media

Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image provided by LoremFlickr

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