Has the Merge been good for Ethereum?
Ever since Ethereum’s switch to Proof of Stake consensus mechanism following the Merge on September 15th 2022, the network appears to have struggled as other Layer 2 solutions, as well as faster, lower-cost blockchains like Solana, Avalanche, Base, and Aptos, grow. Despite the Merge’s expected benefits, Ethereum’s higher transaction costs and congestion has meant some users and developers have been attracted to alternatives, resulting in a decline in on-chain activity and network revenue for Ethereum. The muted impact of Ethereum spot ETFs has further dampened market sentiment. Ethereum’s future success depends on its ability to quickly implement upgrades that enhance scalability and reduce fees to remain competitive.
