What to Expect from Ethereum's Merge Upgrade

Christine Kim | Galaxy Digital Research | [email protected] | @christine_dkim


The Merge upgrade is Ethereum’s long-awaited transition from a proof-of-work (PoW) consensus protocol to proof-of-stake. As the network’s most complex and radical code change to date, the Merge is expected to strengthen the value proposition of ether (ETH) in three main ways. 

  • Narratives around ether as an environmentally sustainable cryptoasset are expected to take off in a way that has never been possible for bitcoin, the world’s first and largest cryptoasset, due to Bitcoin’s reliance on PoW mining.

  • In addition, the Merge’s impact on network issuance is likely to strengthen the narrative around ether as a store of value.

  • Finally, the Merge is also anticipated to bolster the narrative around ether as a productive asset able to generate profits and cash flow through staking yields.

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