The next Merge upgrade for Ethereum is eagerly awaited by the global blockchain community. Stablecoins and transactions supported by the Ethereum blockchain may run into difficulties, according to a DappRadar analysis published before the launch. Ethereum is switching to the more energy-efficient Proof-of-Stake (PoS) mining model from its labor-intensive Proof-of-Work (PoW) mining model. The Merge, also known as the blockchain update, is expected to be released in the middle of September and is regarded as the biggest blockchain update to date.
Ethereum offers a decentralised network of token trading, lending, and yield-farming initiatives that collectively handle billions of dollars in daily cryptocurrency value. The Merge upgrade on the Ethereum blockchain could cause interruptions in Decentralized Finance (DeFi) protocols.
According to CoinDCX, the Ethereum blockchain has the greatest value locked up overall in decentralised exchanges and lending protocols.
According to DappRadar's analysis, MakerDAO (MKR) recently asserted in a Twitter conversation that the Merge would cause more harm than good. The developer of the DAI stablecoin is MKR. As part of its analysis, MKR also asserted that the Merge release might lead to selling pressure on PoW-based blockchains.
Recently, the cryptocurrency investing firm Grayscale has voiced worries over potential market effects of the Merge. According to the report, the cryptocurrency investment business thinks that the Merge could result in a fork with unanticipated and unfavourable results.
All of these forecasts will eventually be put to the test, but the Merge has been hailed as one of the most significant turning points for the blockchain sector.
Tether, the largest stablecoin, and Circle Pay, the company that produces USD Coin, expanded support for the Merge earlier this month.
While Circle Pay has stated that it will only use that version of Ethereum for the operations of USD Coin once the Merge has occurred, Tether has chosen to begin making preparations to support the Merge in accordance with its release timeline.
The Merge upgrade is anticipated to reduce Ethereum's power consumption by 99.95%, according to a blog post written by the platform's developers last year.
The blockchain's creators recently announced that bug bounty rewards for Ethereum can now reach $1 million (approximately Rs. 8 crore).
