What will happen to rewards on Ethereum after the merger? [ETH] Proof-of-Stake Blockchain? any idea? Then consider the following scenario.
The merge is one of the most awaited features of the Ethereum network post-merger. According to IntoTheBlock, early estimates claimed that the bet would reward users between 12% and 15%. However, it seems that the percentage will decrease after the merge.
Could this explain ETH’s downtime in the staking game?
worth waiting till the end
The significant growth in stake ETH has accelerated since the launch of the staking derivative token stETH. But at the same time, the rewards decreased proportionately due to the increase in staked ETH. In fact, the stake reward for Ethereum will drop between 6% and 8% after the merge.
That’s why the stakes backfired or are planning to back out from the network. To support the former, Messari’s insight may come in handy here.
Currently, ETH has a lower staking ratio than other PoS chains such as Binance (BNB chain), Solana, Cardano, Avalanche and Polkadot. Here is the graph to measure the ratio.
It is quite clear that in the betting races across various PoS chains, ETH came last with a rate of 11%. Could it be better? Possible yes. “After the merge and the Shanghai upgrade, the ratio should settle at the same price as other proof-of-stake (PoS) networks,” Messari analyst couple,
But for now things are not going well.
doubling on the decline
The stETH exchange price on the curve fell to 0.9585 ETH. The current pool currently holds 155,860 ETH (accounting for 22.72%) and 530,141 stETH (77.28%).
This can prove to be a big setback for some people. Just understand it two months ago, More and more transactions are swapping ETH for stETHon curve finance compared to the other side. it means that people bought stat at a great discount.
I want out – regardless
That being said, there are some concerns regarding the prize of the bet. Following the drop in staking rewards, major holders tried to move their staked ether to different wallets.
For example, according to on-chain data, a wallet belonging to bankrupt crypto hedge fund Three Arrows Capital removed $33 million worth of staked ether (stETH) from the curve pool.
According to the Dune Dashboard, 29,435 CRVs worth $34k and 31,276 LDOs worth $69k were also swapped on the CoW swap. Hedge Funds Most Likely to Convert Holdings to Ethereum [ETH] And transfer funds to other wallets.
But again, the above statement may see a change after the merge as the returns will be higher and one will be able to share accordingly.