Ethereum has officially entered a new era. On September 15 at 14:00 UTC, the long-awaited “Merge” was successfully completed. This milestone event marks the integration of Ethereum’s mainnet with the Proof-of-Stake (PoS) consensus layer, known as the Beacon Chain.
With the transition to PoS, the role of traditional mining hardware is rapidly diminishing. The highly energy-intensive Proof-of-Work (PoW) model, which relied on miners solving complex mathematical problems to validate transactions and create new blocks, has been replaced. In the new system, users can participate in network security and earn rewards by staking ETH—a process that requires a minimum of 32 ETH to become a validator.
This shift has raised discussions about the decentralization of the network and the future of blockchain consensus mechanisms.
What Changed with The Merge?
Prior to The Merge, Ethereum operated on a PoW consensus mechanism—much like Bitcoin. Miners used powerful computing equipment to compete for the right to add new blocks to the blockchain, receiving block rewards in return.
Now, under PoS, validators are chosen based on the amount of ETH they hold and are willing to “stake” as collateral. This transition aims to reduce energy consumption, lower transaction fees, and improve scalability.
According to real-time market data from CoinMarketCap, Ethereum’s price experienced short-term volatility around the time of The Merge, briefly dipping below $1,600 before recovering. At the time of writing, ETH is trading around $1,590, with a 24-hour decline of approximately 1.11%. Its market capitalization remains above $190 billion.
A Long Road to Proof-of-Stake
The idea of moving Ethereum to PoS isn’t new. In a post titled “Casper the Friendly Finality Gadget,” Ethereum co-founder Vitalik Buterin discussed the early research into PoS, which began back in January 2014—even before Ethereum’s mainnet launch.
The roadmap was further formalized in March 2015 when developer Vinay Gupta outlined the four stages of Ethereum’s development, with the final stage—dubbed “Serenity”—intended to implement PoS. The Beacon Chain, which runs in parallel to the mainnet, went live in 2020, setting the stage for The Merge.
The actual transition involved a series of testnet “shadow forks,” the first of which was completed in April 2022. The final shadow fork took place in September, confirming that the network was ready for the migration. The exact timing of The Merge was determined by the Terminal Total Difficulty (TTD), a specific value related to mining difficulty.
Market Response and Price Action
Ethereum’s market performance in the months leading up to The Merge was notably strong. After rebounding from lows around $1,000 in mid-July, ETH rallied by more than 56% by the end of the month—outperforming many other cryptocurrencies, which averaged gains of around 15%.
This rally reflected high expectations for Ethereum’s ability to address long-standing issues such as low transaction throughput and high gas fees. However, in the hour immediately before The Merge, ETH price action turned volatile, falling briefly below $1,600 before stabilizing.
Opportunities and Challenges After The Merge
One major area of opportunity is in the staking market. According to Sun Yulin, a senior researcher at OKLink, the current staking rate for Ethereum is below 12%, which is low compared to other PoS networks where staking participation often ranges between 40% and 70%. This suggests significant room for growth in staking activity post-Merge.
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On the other hand, the end of PoW mining on Ethereum has left many miners seeking alternatives. Some are shifting to other PoW blockchains like Ethereum Classic (ETC), which has already seen positive price movement in anticipation of increased mining activity.
Hardware such as GPUs, which were widely used for Ethereum mining, may see reduced demand, potentially impacting the graphics card market.
There has also been opposition to the Merge. Prominent figures in the crypto community, such as “Chandler Guo” (also known as “宝二爷”), have supported alternative forks like ETHw (EthereumPoW). Mining giant Bitmain has publicly expressed support for ETC.
However, forking a blockchain is not without risk. Copying ChainID and other network parameters can make new forks vulnerable to “replay attacks,” where transactions on one chain are maliciously rebroadcast on another.
Frequently Asked Questions
What is Ethereum’s Merge?
The Merge refers to Ethereum’s transition from a Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS). It integrated the existing execution layer with the new PoS-based Beacon Chain.
How does staking work in Ethereum 2.0?
To become a validator, users must stake 32 ETH. Validators are responsible for proposing and attesting to new blocks. In return, they earn rewards but also risk penalties (slashing) for malicious behavior.
Can I still mine Ethereum with my GPU?
No. Traditional GPU mining is no longer supported on the Ethereum mainnet. Miners may switch to other PoW chains like ETC or consider staking instead.
What happens to my existing ETH tokens after The Merge?
Your ETH remains unchanged. The Merge was a consensus-layer upgrade and did not require users to take any action with their tokens or wallets.
Will gas fees decrease after The Merge?
While The Merge lays the foundation for future scaling solutions like sharding, it does not immediately reduce gas fees. Further upgrades are planned to address transaction costs.
Are there risks associated with Ethereum forks like ETHw or ETC?
Yes. New forks may be subject to replay attacks and often have lower security and liquidity. Users should exercise caution when interacting forked chains.
Conclusion
The Merge is one of the most significant upgrades in Ethereum’s history. While it introduces major changes to consensus and security, it also opens the door to a more scalable and energy-efficient future. The market’s response has been mixed, with both optimism and skepticism shaping short-term price action.
Staking is expected to grow, and developers continue to work on further improvements to the network. As the ecosystem adapts, the full impact of The Merge will become clearer.
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This article is for informational purposes only and does not constitute financial or technical advice.