Merge upgrade marks official transition to proof-of-stake consensus
In a recent blog post, the Ethereum Foundation provides more information on the merger and what to expect in the coming months. The merge upgrade marks the official transition to proof-of-stake consensus.
The existing Ethereum Mainnet will “merge” with the beacon chain proof-of-stake system, completing Ethereum’s transition from proof-of-work to proof-of-stake.
Ethereum developers have successfully released “Kiln”, the latest fusion testnet. Changes to the oven testnet incorporated changes to Merge specifications based on extreme cases discovered on Kintsugi, as well as certain renamings. Although the change of outlet on the fusion test network revealed some implementation issues, the Ethereum Foundation said fusion testing will continue with everyone on deck. If no critical issues are discovered, Kiln will be the last new public testnet to be launched.
According to Ethereum Foundation, testnet and mainnet upgrade timelines will be shared through community media.
Ethereum Whale Purchase
Market watchers predict increased institutional adoption once the Eth 2.0 upgrade is complete.
According to on-chain analytics firm Santiment, Ethereum’s top 10 whale addresses have accumulated 4.3% more of the total supply than they had one year ago today. Santiment notes that the 23.7% of all ETH held by these wallets remains very close to the high levels reached in late January.
Ethereum is facing one of the largest exchange outflows, with nearly 151,000 withdrawals from exchanges on March 23, as InTheBlock the data suggests. On-chain analytics show that ETH reserves on centralized exchanges have declined rapidly in 2022, totaling over 1.08 million.
Ethereum 2.0 staking contracts that already gained more than 10 million ETH in total value are continuously growing as more Ethereum investors and traders choose stable 12% APY options rather than holding their funds on exchanges.
At press time, Ethereum was trading at $3,128 after hitting highs of $3,190 on March 25.
