The Ethereum Merge update, one of the most significant events in the cryptocurrency and blockchain space since Bitcoin’s last “halving”, was updated in mid-September this year after years of work and planning by Ethereum developers.

Impact of the Ethereum Merge Update

Ethereum’s Merge update upgrades the Ethereum network from a proof-of-work (PoW) model to a proof-of-stake consensus model (PoS), outlawing inefficient blockchain-validated mining methods.

This significantly reduces Ethereum’s energy consumption by more than 99%, a move welcomed by the market as the environmental impact of cryptocurrencies is gaining industry and global concern.

Ethereum users must now stake Ethereum (ETH) tokens to verify transactions, a move that could make the blockchain more secure as malicious actors must have a majority staked ETH to verify fraudulent blocks.

Today, ethereum is issued to those who participate in staking, lowering the barriers to entry into the network, especially for those who use staking pools.

The amount of ether required to reward validators is much less than what is required to reward miners, so ether issuance has declined since the Merge update.

However, before ether can become a deflationary cryptocurrency, the cryptocurrency market as a whole must improve.

The price of Ethereum, which has lost about 20% since the Merge update, remains in a general “bear market” for cryptocurrencies, with Bitcoin (BTC) and other cryptocurrencies under downward pressure.

In addition to Ethereum’s future deflationary potential as described above, there is a planned update coming that Ethereum traders should keep an eye on.

Invest in Ether on PrimeXBT

How will the future of Ethereum develop?

The Ethereum Foundation released its next upgrade in October, titled “Shanghai.”

This new update package is scheduled to be completed by September 2023, with adjustments and refinements expected as the work of Ethereum developers progresses and priorities are determined.

The “Shanghai” upgrade will likely include the “Ethereum Improvement Proposal (EIP)”, the most anticipated of which is the gas fee in the Layer 2 (L2, including popular cryptocurrency projects such as Polygon (MATIC) ) protocol (ie: user fees) decrease.

Another big update in Shanghai should be: the withdrawal of pledged ether.

Currently, validators are required to own at least 32 staked Ethereum tokens, which equates to over $40,000 at today’s prices (October 28, 2022).

Before the implementation of the “Shanghai” update, these pledged ethers were locked as collateral and could not be withdrawn or traded.

Clearly, Ethereum validators are eager to implement withdrawal operations in the next major network upgrade.

Finally, the update also plans to optimize the smart contract functionality of the PoS model.

The Ethereum network remains the foundation of Decentralized Autonomous Organizations (DAOs), Non-Fungible Tokens (NFTs), and Decentralized Finance (DeFi), and planned Ethereum updates will include all of these important things that make the cryptocurrency industry Elements for faster, more stable and more scalable operations.

Go to PrimeXBT’s Official Website

Ethereum’s long-term value

Given the importance of Ethereum to all aspects of the cryptocurrency system, the continuous improvement and optimization of its network will undoubtedly do no harm.

For traders and investors, this should increase the value of ether as blockchain solutions are expected to see wider adoption in the future economy.

Ethereum co-founder Vitalik Buterin said that Ethereum is about 55% complete and its full potential has yet to be tapped.

From an investment standpoint, if Ether can rise again and break above its all-time high of $5,000, the current price of around $1,340 is arguably a bargain buy.

Over time, the work of Ethereum developers will undoubtedly increase the demand for ETH. Currently, users can trade Ethereum on the PrimeXBT platform at lower prices after the Merge upgrade.

Open PrimeXBT’s Crypto Account

Trade Ethereum with PrimeXBT and earn while saving

PrimeXBT is a one-stop cryptocurrency platform that provides trading, investment, and exchange services for over 50 top cryptocurrencies, indices, and tokenized assets.

Since the Ethereum blockchain switched from the PoW consensus mechanism to the PoS mechanism, the network fee for transactions has dropped significantly.

In view of this, StormGain has also decided to reduce the platform’s Ethereum token withdrawal fee.
Currently, StormGain’s fee rates are as follows:

  • USDT/USDC/DAI: Fixed withdrawal fee reduced from 35 USDT/USDC/DAI to 7 USDT/USDC/DAI
  • ETH: Fixed withdrawal fee reduced from 0.008 ETH to 0.0023 ETH

Ethereum’s ultra-low withdrawal fees are just one of the many benefits PrimeXBT users can enjoy.

In addition, the platform also offers ultra-low cryptocurrency transaction fees, advanced analytics and trading signals, cryptocurrency holding interest, and even free built-in Bitcoin cloud mining tool.

PrimeXBT has a web version and an easy-to-use smartphone app, the platform offers cryptocurrency traders the best conditions in the industry.

Sign up in seconds and try a demo account to see the power of PrimeXBT to maximize your profits with ease!

Invest in Ether on PrimeXBT