Since Ethereum’s transition to a Proof-of-Stake (PoS) consensus method, it may seem as though not much has changed. This is because macroeconomic factors influence market sentiment and price movement. Since the merger, the value of ETH has decreased by 14.4% while the dollar’s strength has increased.
The merging has, however, significantly altered ETH’s tokenomics in the background. As many readers may already be aware, miners who had previously been motivated to create and validate the blocks for the Ethereum mainnet are no longer required as a result of the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
This is due to validators taking over the role of validating chain blocks after staking ETH to support network security. In other words, this modification has reduced ETH emissions per block by about 95%. On the Ultrasonic money website page, which tracks all statistics on ETH’s current emissions compared to a PoW Ethereum, you can see live updates of this.
This graph shows that ETH inflation has significantly decreased, which means there is less ETH available. Because of this supply shock, there could be significant price changes in the future due to rising demand. Additionally, the amount of ETH in circulation would decrease because each transaction would burn a certain amount of ETH at a gas price of 16 gwei.
The hazards of staking ETH and the appropriate value for liquid staked ETH, such as stETH, were topics of discussion earlier this year. Many of these worries seem to have vanished now that the merger was accomplished. This is demonstrated by the recent convergence of ETH and stETH values, which suggests that both should have similar values.
The new standard appears to treat liquid-staked ETH tokens and ETH interchangeably. Other options, including Rocketpool’s rETH, have been gaining popularity as means to obtain the benefits of staking while still being able to use the commodity elsewhere. stETH from Lido is already well known in this regard (such as DeFi). The desire to stake Ethereum has been steadily increasing and this trend has accelerated after the merging.
Source: https://www.thecoinrepublic.com/2022/09/25/where-have-the-miner-rewards-gone-after-the-ethereum-merge/