The Merge changed everything for Ethereum back in 2022 but despite this impressive upgrade, things have not panned out for $ETH.

Ethereum Post-Merge

Ethereum operates as a Proof-of-Stake (PoS) blockchain, a significant shift from its original Proof-of-Work (PoW) mechanism. This transformation, known as The Merge, was successfully completed on September 15, 2022, uniting the Ethereum Mainnet with the Beacon Chain into a single PoS network. The Merge slashed Ethereum’s energy consumption by approximately 99.95%, positioning it as a more sustainable alternative to PoW-based cryptocurrencies like Bitcoin.

While PoS drastically reduces electricity usage, some critics argue it may compromise decentralization, potentially exposing Ethereum to manipulation or centralized control. However, proponents highlight benefits like lower transaction fees and a token-burning mechanism—introduced with earlier upgrades—that could drive ETH’s value higher as supply diminishes.

A Brief History of Ethereum and the Path to The Merge

Ethereum’s journey began with a community-driven funding model in 2016, enabling users to influence resource allocation. That same year, a major hack siphoned off significant community funds, prompting a hard fork to recover them. This decision split the community: those opposing the fork preserved the original blockchain, creating Ethereum Classic.

Later in 2016, Ethereum weathered denial-of-service (DoS) attacks, leading to the Tangerine Whistle and Spurious Dragon forks. These upgrades bolstered network security by adjusting gas fees. Subsequent forks enhanced efficiency and usability, paving the way for The Merge in 2022, which finalized Ethereum’s shift to PoS.

Why Ethereum Adopted Proof-of-Stake

Ethereum’s transition to PoS was driven by scalability challenges fueled by the rise of DeFi, NFTs, and dApps. Pre-Merge, the network resembled a congested highway: heavy traffic slowed transactions, and high gas fees—sometimes exceeding $100 for dApp interactions—prioritized those willing to pay more. In early 2021, simple transactions averaged $16–$20, often outstripping their value.

To compete with faster “Ethereum killers” like Solana and Avalanche, Ethereum implemented multiple upgrades, culminating in The Merge. This shift not only reduced energy use but also aimed to address scalability and cost, though gas fees remain a concern for some users.

The History of Major Ethereum Hard Forks

Ethereum’s evolution relies on hard forks—protocol updates that introduce technical enhancements.

Ethereum Classic

Back in 2016, a major hack resulted in a lot of the community funds being stolen which in turn led to a hard fork as a way to return the stolen funds. But some members of the Ethereum community didn’t want a hard fork and they  branched off into a new cryptocurrency using the old blockchain. They called it Ethereum Classic.

Later that same year, Ethereum faced denial of service attacks, preventing the network from operating. Developers created Tangerine Whistle and Spurious Dragon forks as a response, upgrading the network to add protections against future attacks by adjusting gas fees.

Other forks enabled the Ethereum network to grow, becoming more efficient and easier for users and developers to navigate.

All this set the stage for Ethereum 2.0, an upgrade that saw the transition from Proof-of-work validation to Proof-of-stake.

 

Below is a timeline of key forks, with full details available at ethereum.org.

  • Frontier (2015):
    Ethereum’s launch

  • DAO (2016):
    Response to the hack, birthing Ethereum Classic

  • Homestead (2016):
    Early stability improvements

  • Tangerine Whistle & Spurious Dragon (2016):
    DoS attack countermeasures

  • Byzantium (2017):
    Enhanced privacy and efficiency.

  • Constantinople (2019):
    Delayed difficulty bomb

  • Istanbul (2019):
    Improved interoperability

  • Beacon Chain Genesis (2020):
    PoS foundation launched.

  • Berlin (2021):
    Gas fee optimizations

  • London (2021):
    EIP-1559 and token burning introduced

  • Altair (2021):
    Beacon Chain upgrade

  • Arrow Glacier (2022):
    Difficulty bomb delay

  • Gray Glacier (2022):
    Further bomb delay

  • Bellatrix (2022):
    Pre-Merge PoS prep

  • The Merge (2022):
    PoS transition completed

The London Hard Fork: A Turning Point

  • Date: August 5, 2021, 12:33:42 PM UTC
  • Block Number: 12,965,000
  • ETH Price: $2,621 USD (then; now ~$3,500 as of March 2025 per CoinGecko)
The London Hard Fork introduced EIP-1559, burning a base fee with each transaction and reducing ETH supply. This shift made mining less profitable, setting the stage for PoS. EIP-3529 curbed network congestion by limiting refunds, while EIP-3198 improved smart contract pricing transparency. EIP-3554 increased PoW mining difficulty, nudging the network toward PoS, with effects fully realized post-Merge.

The Berlin Hard Fork: Setting the Stage

  • Date: April 15, 2021, 10:07:03 AM UTC

  • Block Number: 12,244,000

  • ETH Price: $2,454 USD (then)

The Berlin Hard Fork tackled rising gas fees with EIPs like 2565 and 2930, optimizing costs algorithmically. EIP-2718 ensured backward compatibility, while EIP-2929 added fees to deter DoS attacks—laying groundwork for later upgrades like London and The Merge.

Will Ethereum’s Upgrades Boost ETH’s Value?

Post-Merge, Ethereum’s energy efficiency and token-burning mechanism have fueled speculation about ETH surpassing Bitcoin. Since London, network capacity rose 9%, and ETH’s price climbed from $2,700 (August 2021) to over $3,500 by March 2025. KOLs like Anthony Sassano on X argue burning enhances scarcity, potentially driving prices higher.

Staking now requires 32 ETH (not 25 as pre-Merge), though pools allow fractional participation with yields around 4–5% annually. However, competition from faster, cheaper blockchains persists, with gas fees still a pain point for users.

Key Takeaways

Ethereum’s decentralized ecosystem thrives on community-voted upgrades implemented via hard forks. Early forks patched security flaws, while Berlin and London addressed scalability and laid the PoS foundation. The Merge cemented this shift, cutting energy use by 99.95% and burning fees to reduce supply. As Ethereum scales, it aims to outpace competitors, though gas fee elimination remains a future goal.

For a deep dive, check out Lex Fridman’s Podcast #188 with Vitalik Buterin, covering Ethereum’s roadmap and more.

ethereum.org

FYI The Merge was executed on September 15, 2022. It completed Ethereum’s transition to proof-of-stake consensus, officially deprecating proof-of-work and reducing energy consumption by ~99.95%.

Image: Ethereum.org

If you want an a breakdown of Ethereum and the upgrades and technology being implemented, listen to the Lex Fridman Podcast #188 where he sits down with Ethereum founder Vitalik Buterin.