to a Proof-of-Stake system.
This might provide various benefits, including making ETH a deflationary asset.
In this regard, the on-chain activity of Ethereum holders is one of the key metrics being tracked to estimate the impact of the update.
Indeed, as per statistics from a blockchain analysis firm, as of September 15, the Ethereum post-Merge inflation study revealed that 46.15% of the cryptocurrency's PoS nodes are owned by two addresses.
Following the update, the first address validated about 188 blocks (28.97%), while the second largest has 16.18% or 105 blocks. In general, the two wallets dominate Ethereum's transaction processing, data storage, and the addition of new blockchain blocks.
Importance of nodes on the Ethereum blockchain
Following the implementation of the staking mechanism on Ethereum, nodes play an important role by committing "stakes" of tokens for a specified amount of time. This was accomplished in exchange for the chance to create the next block of transactions.
Although the Ethereum Merge is still in its early stages, the dominance of the two addresses runs against Ethereum's overall vision of decentralization. With staking, Ethereum aims to extend blockchain control to all users, which is difficult with the energy-intensive Proof-of-Work network.
Meanwhile, the Merge continues to fuel interest in the crypto industry, with the development project serving as a catalyst for a price gain. It also attracts institutional investors to the ecosystem. However, the primary focus of attention is on Merge's initial success.
As reported by CoinGabbar, the founder of crypto lending company Nexo has warned that the update has no guarantee of driving Ethereum higher. He stated that early success must be monitored.
Pressure on Bitcoin
Notably, the Merge is projected to transform Ethereum into an energy-efficient blockchain, putting pressure on Bitcoin (BTC). According to the best crypto currency app CoinGabbar, environmental advocacy groups are pressuring Bitcoin to enhance its environmental performance.
It is worth noting that Bitcoin is still being chastised for its carbon footprint as governments work to tackle climate change.
At the same time, following Ethereum's most recent development, co-founder Vitalik Buterin predicts that the PoS status would lower world electricity consumption by around 0.2%.
Read also: What Is Fork Chain and What Does It Mean for EthereumFair (ETF)?
