Skip to content

Post-Merge, Ethereum's Gas Usage Plummets by 99.99%

A year after The Merge, Ethereum has become greener, with gas consumption down 99.99%. As the Ethereum community awaits the Dencun upgrade, what can we expect for the network's future?

Ethereum's Evolution: Post-Merge Gas Decline and the Anticipated Dencun Upgrade

Ethereum has undergone a major transformation since The Merge, becoming a more sustainable and green platform. One year into this monumental shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the results are compelling. Glassnode Alerts reports a whopping 99.99% decrease in Ethereum's daily energy consumption.

While recent SocialFi trends created some gas fee spikes, Ethereum's network is significantly less strained. This improved fee scenario can be attributed to the advancements in Layer-2 scaling solutions. But the dip in NFT sales and dwindling meme trend enthusiasm have further alleviated gas demands. This led to Ethereum's turn towards deflation, with an astonishing 300,000 ETH burned, resulting in an annual deflation rate of 0.25%.

Post-Merge, Ethereum enthusiasts eagerly await the Dencun upgrade, set for a late 2023 release. The recent All Core Devs meeting highlighted the forthcoming Ethereum Improvement Proposals (EIPs) - especially EIP-4844. This EIP will fortify the network's security and scalability.

EIP-4844 introduces a "blob-transaction" system, enhancing gas fee optimization between Layer-1 and Layer-2. While The Merge was an entry point for Ethereum staking with over $20 billion ETH staked, concerns over centralization persist. Ethereum is actively addressing these with proposals like EIP-7514, which aims to counterbalance the risks of liquid staking.

Amidst these technical advancements, the financial landscape sees turbulence. The FTX crypto entity is set to liquidate vast amounts of crypto assets. With billions of dollars in Ethereum, Solana, Bitcoin, and more on the line, the market is bracing for potential shifts.

Overall, as Ethereum continues to evolve with the Dencun upgrade and further optimizations, its journey post-Merge paints a promising picture for its future and the larger crypto ecosystem.