Long awaited by the ecosystem, Ethereum (ETH) has just successfully completed its famous Merge and thus marks its transition to proof of stake. We are following this historic event live.
Ethereum successfully passes The Merge stage
Awaited for years, the passage ofEthereum (ETH) from proof of work (PoW) to proof of stake (PoS), symbolized by The Merge, has finally arrived. The famous Terminal Total Difficulty (TTD) took place today around 8:42 a.m. Paris time, marking at the same time this historic turning point.
Although it will still take some time to finalize the final settings, everything has a priori gone as planned for the moment. After this merger between the Beacon Chain and the Mainnetminers no longer receive revenue for block production and have passed the torch to validators.
While part of the ecosystem feared that miners would “unplug their machine” in an attempt to slow down the advent of TTD, Vitalik Buterin himself was surprised that the majority of the actors have played the game. Indeed, the latter noticed last night that the drop in hashrate was less pronounced than expectedfar from the 50% that some people could announce:
Looks like the “hashrate will drop weeks before the merge due to miners rushing to sell ahead of everyone else” thesis has been proven completely false.
I’m a bit surprised! I argued against a 50% drop but definitely expected like 5-10%. pic.twitter.com/l9OpT8fPFl
— vitalik.eth (@VitalikButerin) September 14, 2022
👉 ETH 2.0 FAQ: How to take advantage of MERGE? Understand everything about the update:
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How is the price of Ethereum changing following The Merge?
On Friday, September 16 at 3:30 p.m., a little over 24 hours after The Merge, the price of Ethereum is in the $1,450 zone, down since the implementation of this update. Before The Merge, the price of ETH hovered around $1,600.
The ecosystem is in turmoil for the event
As previously announced, cryptocurrency exchanges suspended withdrawals and deposits of ETH and ERC20 tokens in order to play it safe. This is particularly the case of Binance or Coinhouse:
⚠️ As a safety measure during #TheMergetransactions relating to Ethereum as well as deposits and withdrawals of this asset on Coinhouse will be blocked from 11 p.m. tonight until tomorrow morning.
More information on our article here ⤵️ https://t.co/RWItvWcFvD
—Coinhouse (@CoinhouseHQ) September 14, 2022
On the side of lending and borrowing platforms such as Aave (AAVE), interest rates exploded in demand for ETH. On Ethereum, for example, people who deposited ETH as collateral received the equivalent of more than 71% per year:
Returns received by liquidity providers
On the borrowing side, these platforms had to suspend them temporarily, as previously announced. Interest rates were therefore not available on the Mainnet this morning. However, for other networks such as Polygon (MATIC), borrowing rates could sometimes exceed 195% at the time of writing these lines.
Of course, all these variables are only temporary and everything will return to normal as the network stabilizes.
Regarding the ETH staked in the Beacon Chain smart contract, it will now be necessary a future update for unlocking.
The Merge, though historic, was just one step in scaling Ethereum. There is still a long way to go to reach the 100,000 transactions per second hoped for by Vitalik Buterin. The next step in this evolution will be The Surge, with the implementation of sharding.
👉 On the same topic – The Merge of Ethereum (ETH) – Beware of scams!
A surprising anecdote for the last block before The Merge
Wishing to immortalize this historic event for the history of Ethereum, the Vanity Blocks project ensured that the last block before The Merge contained only one transaction.
Vanity Blocks then paid 30.2 ETH to saturate the block, this sum being necessary to reach the gas limit per block. This operation allowed Vanity Blocks to be alone on this block. An NFT was then minted and offered for sale on OpenSea.
👉 Learn more about the NFT of the last Ethereum block before The Merge
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