{"id":505027,"date":"2022-10-28T23:00:00","date_gmt":"2022-10-28T20:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price\/"},"modified":"2022-10-28T23:00:00","modified_gmt":"2022-10-28T20:00:00","slug":"here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price\/","title":{"rendered":"# Here is why strong post-Merge fundamentals could benefit Ethereum price"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3cd9525800b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3cd9525800b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price\/#%E2%80%9D_Here_is_why_strong_post-Merge_fundamentals_could_benefit_Ethereum_price_%E2%80%9C\" >&#8221; Here is why strong post-Merge fundamentals could benefit Ethereum price &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price\/#DeFi_protocols_see_an_uptick_in_TVL_and_daily_active_users\" >DeFi protocols see an uptick in TVL and daily active users<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price\/#Lucrative_staking_yields\" >Lucrative staking yields<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Here_is_why_strong_post-Merge_fundamentals_could_benefit_Ethereum_price_%E2%80%9C\"><\/span>&#8221; Here is why strong post-Merge fundamentals could benefit Ethereum price &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4b69a2fe>The shift of the Ethereum\u00a0blockchain to a proof-of-stake (PoS) protocol opened new opportunities for developers and investors to explore, including the burning of Ether (ETH). Now, Ethereum\u00a0transactions are validated through staking rather than mining.<\/p>\n<p>Staking impacts the supply and price dynamics of Ether in ways that are different than mining. Staking is expected to create deflationary pressure on Ether, as opposed to mining, which induces inflationary pressure. <\/p>\n<p>The increase in the total amount of funds locked in Ethereum contracts could also push ETH\u2019s price up in the long term, as it affects one of the fundamental forces that determine its price: supply. <\/p>\n<p>The percentage of newly issued Ether versus burned Ether has increased by 1,164.06 ETH since the Merge. This means that since the Merge, almost all the newly minted supply has been burned through the new burn mechanism, which is expected to turn deflationary when the network sees an uptick in use.<\/p>\n<p>According to Bitwise analyst Anais Rachel, \u201cIt&#8217;s likely that all ETH issued since The Merge will have been taken out of circulation by the end of this week.\u201d <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ It&#8217;s likely that all ETH issued since The Merge will have been taken out of circulation by the end of this week <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/WqRASUwi4i\">pic.twitter.com\/WqRASUwi4i<\/a><\/p>\n<p>\u2014 Anais Rachel (@Anais_Rchl) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Anais_Rchl\/status\/1585446465668784129?ref_src=twsrc%5Etfw\">October 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nWhile the graph covers the 43 days since the Ethereum Merge, the tokenomics are set up to turn Ether deflationary.<\/p>\n<p>The reduction is attributable to Ethereum\u2019s movement from proof-of-work to proof-of-stake. The total supply difference shows that Ether is still inflationary, with +1,376 ETH minted since the Merge.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/952aee10-8c6c-47cc-9c34-27ff76c53865.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Supply change post-Ethereum Merge. Source: Ultrasound Money<\/em><\/figcaption><\/figure>\n<p>Ankit Bhatia, CEO of Sapien Network, explained to Cointelegraph how staking impacts supply back in May 2020: <\/p>\n<blockquote><p>\u201cThe retail market would most likely acquire ETH from exchanges like Coinbase, which will probably offer the option for buyers to im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely stake their purchase and further reduce circulating supply.\u201d <\/p><\/blockquote>\n<p>There is evidence of an increase in locked Ether. For example, DefiLlama <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/chain\/Ethereum\">shows<\/a> that over $31.78 billion worth of Ether is currently locked in smart contracts.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/5de00612-1b1d-40df-a11d-90e4228c8506.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Total Ether value locked. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<p>In addition to Ethereum\u2019s PoS-locked tokens, Token Terminal data provides a breakdown of staked tokens throughout the Ethereum ecosystem.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/b55cb374-e26c-4eca-9848-15010499fcaa.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Estimated locked tokens per project. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<p>The leading protocols include Uniswap, Curve, Aave, Lido and MakerDao. For example, the total value locked (TVL) on Lido is $6.8 billion, while MakerDao has $8 billion. <\/p>\n<p>Showing an increased interest in proof-of-stake, Ether holders depositing to stake are moving Lido to new heights. Lido\u2019s TVL increased from $4.52 billion before the Merge <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> on July 13 to $6.8 billion at the time of writing.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/71f15239-998c-471b-94d4-00e8d13f90f8.png\"><figcaption style=\"text-align: center;\"><em>ETH deposited in Lido. Source: Nansen<\/em><\/figcaption><\/figure>\n<p>As October comes to an end, the TVL continues to increase as many investors lock Ether. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"DeFi_protocols_see_an_uptick_in_TVL_and_daily_active_users\"><\/span>DeFi protocols see an uptick in TVL and daily active users <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The TVL and daily active users (DAUs) of Uniswap have been increasing over time. In most cases, the rise in a protocol\u2019s TVL is accompanied by increases in DAUs on the platform. The most likely cause of the increase in TVL and DAUs is the lucrative Ether staking rewards. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/469ea481-bd52-480c-8232-9973197f695e.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>TVL and DAUs for Uniswap. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<p>An increase in DAUs at Uniswap may trigger more Ether to burn due to an increase in transactions, and it may also help take more Ether out of circulation as Uniswap\u2019s TVL grows. The top pairing on Uniswap with Ether is USD Coin (USDC), which currently provides a 34-plus percent annual percentage yield.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/982fc010-d1f4-4633-9fa7-d3f441c69848.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Top 10 Ether pairings on Uniswap V3 with APY. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Lucrative_staking_yields\"><\/span>Lucrative staking yields<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether paired with stablecoins on Uniswap is a top choice for liquidity providers. The pairing is generating, at most, 72.20% APY when looking at Ether paired with Tether (USDT). <\/p>\n<p>It is worth noting that some staking platforms deal with liquid staking derivatives,\u00a0including Coinbase, Lido and Frax. In such cases, the yield is as high as 7% per year. <\/p>\n<p>Data from EthereumPrice.org shows that Lido pays 3.9% APY, Everstake 4.05%, Kraken 7% and Binance 7.8%.<\/p>\n<p>It is important to note that the rate of return also varies based on the amount invested. Usually, smaller amounts have higher APYs than larger amounts. The yield also depends on the protocol. <\/p>\n<p>For example, validators earn more than those who invest on crypto exchanges and pooled staking. However, validators are required to stake 32 ETH and constantly maintain their nodes, which is a reason platforms like Lido help smaller ETH holders earn. <\/p>\n<p>The increase in Ethereum\u2019s TVL from increased yields, the move to PoS, and DAUs on the top Ethereum decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications could eventually lead to an Ether rally.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/here-is-why-strong-post-merge-fundamentals-could-benefit-ethereum-price\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Here is why strong post-Merge fundamentals could benefit Ethereum price &#8220; The shift of the Ethereum\u00a0blockchain to a proof-of-stake (PoS) protocol opened new opportunities for developers and investors to explore, including the burning of Ether (ETH). Now, Ethereum\u00a0transactions are validated through staking rather than mining. Staking impacts the supply and price dynamics of Ether&#8230;<\/p>\n","protected":false},"author":1,"featured_media":505028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvNTNkMmMxYTYtMjI5MC00MzQzLTg5YjQtMTNkMDBkN2FlNGNjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,74860,74868,74938,74939,74876,75578,133582,88700,70551,70552,73785],"class_list":["post-505027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-defi","tag-ethereum-price","tag-market-analysis","tag-proof-of-stake","tag-proof-of-work","tag-staking","tag-uniswap","tag-inflation","tag-interest-rates","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=505027"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505027\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/505028"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=505027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=505027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=505027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}