The long-awaited transition of Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (PoS) was initially projected for completion in June this year. However, developers announced a delay last month without specifying a definitive timeline—only indicating it would take several more months. Now, we finally have clearer updates! If all goes according to plan, the transition will officially launch in August, with the Ethereum Proof-of-Stake "Merge" currently undergoing its final round of testing.
Ethereum's Proof-of-Stake "Merge" in Final Testing Phase
At a recent Web3 event, Ethereum developer Preston Van Loon shared that he anticipates Ethereum will shift from PoW to PoS by August. The final "Merge" testing is now underway.
In early May, Ethereum's core developers decided against postponing the activation of the "Difficulty Bomb"—a coded element in the blockchain designed to intentionally slow the network. This mechanism exponentially increases the time required for miners to validate blocks, effectively reducing their rewards and incentivizing a smoother transition to PoS.
Compared to PoW, PoS offers several advantages:
- Lower energy consumption
- Simplified network operations
- Enhanced decentralization and security
Furthermore, Ethereum investors eagerly anticipate the Merge's impact on ETH's circulating supply. Post-Merge, ETH issuance is expected to decrease by approximately 90%, meaning fewer ETH tokens will enter circulation. Reduced supply coupled with sustained (or growing) demand could drive ETH's price upward. However, given the current bearish trends across most investment assets—including cryptocurrencies—this outcome remains uncertain. According to CoinMarketCap, ETH is trading around $2,000, down over 50% from its all-time high.
👉 Will Ethereum's price surge post-Merge? Here's what analysts predict.
Benefits for Gamers and GPU Buyers
The Merge also brings good news for PC gamers and GPU buyers. As PoS eliminates the need for energy-intensive mining, demand for high-end graphics cards will plummet. This shift is already reflected in declining GPU prices:
- NVIDIA GeForce RTX 30 series: Average price drop of 6% (April–May), with some models falling up to 15%.
- AMD Radeon RX 6000 series: Average decline of 8%, with select cards also seeing 15% reductions.
Additionally, rumors suggest NVIDIA’s RTX 40 series may debut in early Q3 2022, alongside a new budget GPU—the GTX 1630. Intel is also set to release its Arc series desktop GPUs in Q2, further saturating the market and accelerating price drops for overhyped cards from the past two years.
👉 Best time to buy GPUs? Experts weigh in.
FAQs
1. What is Ethereum’s "Merge"?
The Merge refers to Ethereum’s transition from PoW to PoS consensus, drastically reducing energy use and improving scalability.
2. When will the Merge happen?
Developers target August 2022, pending successful final testing.
3. How will PoS affect ETH’s price?
Supply reductions may create upward pressure, but broader market conditions play a significant role.
4. Why are GPU prices falling?
PoS eliminates mining demand, leading to excess inventory of mining GPUs.
5. Will the Merge impact Ethereum’s speed?
Yes, PoS enhances transaction efficiency and network security.
6. Should I invest in ETH before the Merge?
Market volatility advises caution—diversify research beyond Merge hype.