The "triple halving" of Ethereum! 🚀 $ETH
Ethereum is not only the heart of most decentralized applications (dApps), but its recent transition to Ethereum 2.0 (The Merge) has introduced a fascinating economic phenomenon: the "triple halving".
What is the "triple halving"? With The Merge, Ethereum changed its consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS). This reduced the issuance of ETH by ~90%, equivalent to three combined Bitcoin halvings. Before, miners received 13,000 ETH daily. Now, with PoS, validators generate only ~1,600 ETH daily.
Why is it important for investors?
More limited supply: Ethereum has become almost "deflationary" thanks to the token burning implemented by EIP-1559, which destroys a portion of each transaction instead of paying it as a reward. Fewer ETH in circulation means greater value!
Fun fact: During usage spikes, more ETH is burned than generated!
Exponential growth of dApps: Ethereum is the backbone of DeFi, NFTs, and Web3. As more projects adopt its blockchain, the demand for ETH for gas fees continues to grow.
Sustainability: With PoS, Ethereum now uses 99.95% less energy. This green approach attracts both institutional investors and environmentally conscious users.
