One year after “The Merge,” Ethereum has undergone significant changes, resulting in a more environmentally friendly network. The most noteworthy development is the remarkable reduction in Ethereum’s power consumption, by as much as 99.8%. This decrease reflects a more sustainable approach to blockchain technology, addressing concerns about its environmental impact.

Key metrics like Active Ethereum Addresses and Transaction Count have remained stable, without any significant decline. This indicates that the network’s utility and user engagement have not been adversely affected by the market.

Here are some essential statistics and insights:

  1. Issuance and Burning:
  • A total of 686k ETH has been issued.
  • Notably, 983k ETH has been burned, with DeFi activities contributing the most significant share at over 38%, NFT 16%, and Layer2 7%…
  • This results in a net reduction of -297,102 ETH in supply, equating to an annual supply reduction of approximately 0.25%. This deflationary mechanism can increase the value of ETH for long-term holders.

2. Staking and Validators:

  • Currently, 11.9 million ETH is staked, with Lido Finance leading the way, capturing 72% of the market share.
  • There are 366,000 new validators added to the network, highlighting growing participation in the Ethereum ecosystem.

3. Concerns of Centralization:

  • While the growth in staking is promising, it has raised concerns about centralization. Lido Finance’s hold on 32.4% of the total Ethereum staked illustrates the potential for power concentration within the network.

4. Concentration of Nodes:

  • Ethereum’s node network has concentrated through centralized web service providers, with AWS commanding a significant 58.1% share. This concentration raises concerns about dependency on a single service provider.
  • Geographically, a considerable number of nodes are located in the United States (42.6%) and Germany (20.9%). Together, these two countries account for nearly 60% of Ethereum nodes worldwide. This geographical centralization introduces vulnerability to government intervention from either nation, which could threaten Ethereum’s decentralization at the node level.

In conclusion, Ethereum’s post-“The Merge” landscape has seen substantial improvements in environmental sustainability and a reduction in power consumption. Despite these positive changes, concerns remain regarding centralization in staking, node concentration, and potential government intervention. The Ethereum community must continue to address these challenges to ensure the network’s long-term decentralization and security.