Before we start I would like to say that this is NOT FINANCIAL ADVICE AND IS FOR ENTERTAINMENT PURPOSES ONLY.
It has been about a week since ETH merged to proof of stake. So after the dust has settled how has ETH held up? At first glance, ETH has not held up well, it is down 20% since the merge. So did the merge fail? No. The merge succeeded and went without a problem. So why is ETH down its down because this was a sell-the-news type event where the price pumps before the fact. Then falls off once the event has passed. This is what happened to ETH. This is not bad as this indicates a healthy interest in the coin.
So what does the merge mean for the future of the network? First and most significant of all ETH is now proof of stake, which means that miners are not needed anymore to run the network. This is a massive problem but ill come back to it in a bit. So in proof of stake, you put up your money or your ETH to validate the transactions. If you do that earn an APY which is 8.5% per year at the current moment. This part of the chain has done well so far. The biggest validator of ETH at the moment is LIDO FINANCE. Lido finances coin LDO pumped to over 26% before falling back down, which is a good sign that the chain is healthy.
So why is turning off the mining of ETH bad? First, over a million people's full-time job was to mine ETH, and they all lost their job. The second thing is that it makes ETH less decentralized. Lido owns over 31% of all ETH validators. That is about 4 million ETH. The worst thing of all is that the chain might fork. Even some exchanges have made a special ETH POW trading pair. The information varies from exchange to exchange but it has dropped from 120 dollars all the way down to 6 dollars at the current moment.
This will all shape the future of the ETH blockchain. So that's it for me thanks for reading and have a great day.
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