Note that the drop in power consumption has proven to be massive. As reported by blockchain researcher Justin Drake, Etherium's move to PoS will reduce global energy consumption by 0.2 percent.

One might assume that ETH miners will simply switch to other algorithms and the global energy consumption rate will not change in any way, but this is a misconception. The fact is that supply does not create demand, and the influx of miners will affect the profitability of other algorithms and cryptocurrencies. And since the profitability of the latter will remain the same, it will simply be distributed among more people, which will force some hardware owners out of the game. Accordingly, Drake's point is true.


Etherium ETH

Also, the update to Etherium is affecting the issuance of ETH, that is, the rate at which new coins are being issued. Since the network switched to PoS, it has generated 4,026 new ethers.

Change in the supply of ethers since the blockchain’s transition to PoS

And if the blockchain had continued on PoW, almost 76,000 ETH would have been created on it.

Possible ETH issuance based on PoW network since the blockchain’s transition to PoS

Improved energy efficiency and reduced emission would predictably attract investors to ETH. Here’s the professionals’ viewpoint on the matter.

What will happen to Ether after the merger?

The conservation agenda is important to many big investors right now. Besides, Etherium can no longer be criticised or even banned, citing too “wasteful” of energy. The move to PoS has solved that problem.

However, another one remains – the altcoin’s bandwidth is too low. In an interview with Cointelegraph, co-founder and CEO of trading platform provider Floating Point Group John Perifoy commented on this point. Here’s his rejoinder.

Etherium has not improved in terms of transactions per second. Merging does not increase block size or search speed. We haven’t come to that yet.

This is indeed true: After the upgrade, the Etherium network is coping with the same few dozen transactions per second. That said, as Vitalik Buterin, the creator of the project, has previously stated, the blockchain's transition to PoS and its further upgrades will allow it to reach the 100,000 transactions per second mark. However, this will definitely require the integration of sharding, which will take a long time to implement and test.

The drop in Etherium’s power consumption after PoS

After the “merger”, we’re in for a “jump”. That’s the term Ether’s creator Vitalik Buterin previously used to describe the addition of sharding, a scaling solution that will significantly speed up the blockchain. A date for this upgrade is not yet known, but the developers are moving in the appointed direction.

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Experts also focus on stealing, which is now the backbone of the Etherium network. Under this mechanism, validators lock in their ETH in a deposit contract, for which they receive a guaranteed return of around 5 per cent per annum at the moment According to Perifoy, this is an attractive opportunity for large investments with relatively low risk, as 5 per cent per annum is a good enough result for the world of traditional finance.

Etherium exchange rate

Also as a result of the merger, the overall supply of Ether may shrink, which professional investors are willing to view positively. Before the merger, miners were mining around 13,000 ETH per day as blockchain search fees, but now the issuance has dropped to around 1,600 ETH per day, a 90 per cent drop. That said, some of the transaction fees have been burned into each block as early as August 2021.

Here’s a relevant rejoinder from Ethereum Foundation representatives to that effect.

At an average price of 16 gwei, at least 1,600 ETH is burned every day. Due to this, the issuance drops to either zero or even lower after the merger.

The developers of Etherium.

Consultant Marcus Hammer has the following opinion on the subject.

Not only will the supply be limited, but it will go down. Which means the asset could become deflationary due to reduced ETH issuance and increased combustion. Because of this, Ether could end up becoming more expensive.

Does the event mean that Etherium will now attract more attention than Bitcoin? Here’s a rejoinder from Jim Kyung-Su Liew, adjunct professor at the Cary School of Business at Johns Hopkins University.

PoS and reduced energy consumption by the Etherium network makes ETH a much more attractive investment in terms of environmental, social and corporate governance. However, it is too early to tell whether Etherium can take the place of Bitcoin.

Also, Kyungsoo Liew believes that “avid Bitcoin fans are unlikely to get rid of their BTC in favor of ETH solely because of the merger.”

Edward Moya, senior market analyst at Oanda, also shared the viewpoint.

The merger was successful, but that does not necessarily mean that institutional adoption of the cryptocurrency will go quickly. The key to widespread adoption will be future updates.

That is, the expert suggests that the Etherium update has set the stage for subsequent important upgrades. And they will already be able to attract both new users and professional investors. And this sounds logical, because further developers will have to solve the problem of high commissions, which are very important for most blockchain users.

ASIC miner for Bitcoin mining


We think that the improved energy efficiency of the Etherium blockchain along with the prospect of deflationary ETH may indeed be enough to attract professional investors. In addition, stacking yields of 5 per cent or more are also a serious argument for holders of large capital. However, in the current bear market, the impact of such changes will not be felt immediately. So blockchain enthusiasts will have to wait.


All in all, Etherium is on its way to massive popularity, but it will be a long road. So be patient and subscribe to our millionaire cryptochat.