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Ethereum Difficulty to Be Felt on Blockchain in June as Transition Takes Shape: Details

Sat, 03/26/2022 - 14:35
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Tomiwabold Olajide
Merge upgrade marks official transition to proof-of-stake consensus
Ethereum Difficulty to Be Felt on Blockchain in June as Transition Takes Shape: Details
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In a recent blog post, the Ethereum Foundation provides more information on the Merge 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 merge testnet. Changes to the Kiln testnet incorporated changes to Merge specifications based on edge cases discovered on Kintsugi, as well as some renamings. Although the PoS shift on the merge testnet revealed some implementation issues, Ethereum Foundation said that merge testing will continue with all hands 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 buy in

Market observers foresee increased institutional adoption once the Eth 2.0 upgrade is completed.

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Ethereum is facing one of the largest exchange outflows, with almost 151,000 withdrawn from exchanges on March 23, as IntoTheBlock data suggests. On-chain analytics show that ETH reserves on centralized exchanges have been decreasing rapidly in 2022, adding up to 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 the time of publication, Ethereum traded at $3,128 after reaching highs of $3,190 on March 25.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.