Merge is the most important event that is going to happen in less than three days in the entire era of #Ethereum and it will be the beginning of a new era for Ethereum! ๐
In this article, we will review all the important things that affect the price of $eth. So stay tuned until the end and share if it is useful!
๐ด The most important factor that can be effective after the success of Merge is the passing of the historical curve, the conclusion of research, tests and developments of ethereum in the last 7 years and finally reducing the investor's risk in investing on ethereum!
In all the media, they are trying to reduce inflation by 90%, but one of the most important priorities of an investor is security and the amount of risk that is possible, and reducing inflation by 90% is not attractive if there are relative risks! So the reduction of these risks after Merge means the entry of new actors to invest in Ether!
But the next thing I mentioned is the 90% reduction in ether inflation! After Merge, the reward for new block production in Ethereum will decrease by 90%, which is equivalent to three bitcoin halvings, and it is known as Triple Halving in Ethereum, that the daily production of Ether will decrease from 13000 to 1300, and even if after Merge, the demand We have a severe supply reduction in the new form.
The next thing is the increase in demand for stick ether in the network and confirmation of blocks in the network due to the change of the consensus mechanism from proof of work to proof of stake or POS, in addition to that, the profit of stick ether in the network will increase from the current value of 6% to above this The value comes and the motivation and risk to become a validator in the network increases
๐ต The next thing that basically happens with the increase of activities in the network, which happened after #eip1559, is the burning rate of ether in the network per transaction. It is estimated that after Merge, if the gas price is around 16 gwei, it will neutralize all the inflation from the production site of the new block, and more than this amount, which sometimes increased up to 500 gwei in the rising market, will cause negative inflation in ether or deflationary! Of course, this happened temporarily before Merge, but it was not permanent! But now, with the decrease in the inflation rate, this problem shows itself more
๐ There may be other minor factors, but I wrote the most important factors that came to my mind here. In the next article, I will write a series of misconceptions about merge!
thanks for your attention๐๐ผ