The Ethereum Merge marked a pivotal moment in blockchain history — a successful transition from energy-intensive proof-of-work (PoW) to an environmentally sustainable proof-of-stake (PoS) consensus mechanism. Completed on September 15, 2022, this upgrade not only reduced Ethereum’s energy consumption by over 99% but also laid the foundation for future scalability, security, and decentralization improvements. Now, 100 days later, what has changed? How has the network evolved? And what lies ahead?
This comprehensive analysis explores ten key metrics that reveal the true impact of the Merge — from issuance and staking rewards to MEV dynamics and validator behavior — while setting the stage for the upcoming Shanghai upgrade.
📊 Ethereum Network Performance Post-Merge
Metric 1: ETH Issuance and Burn Rate
One of the most immediate effects of the Merge was a dramatic reduction in ETH issuance. Prior to the transition, Ethereum issued approximately 15,000 ETH per day under PoW. After switching to PoS, daily issuance plummeted to under 1,800 ETH.
Meanwhile, the daily ETH burn rate — driven by EIP-1559 transaction fee burning — remained relatively stable. With supply issuance sharply down and demand-side burning unchanged, Ethereum’s net supply growth slowed to just over 3,000 ETH in 100 days.
This shift transformed Ethereum’s monetary policy: annual inflation dropped from 4–5% pre-Merge to a mere 0.12%, positioning ETH as a potentially deflationary asset during periods of high network activity. For investors and long-term holders, this strengthens Ethereum's role as a digital store of value.
👉 Discover how Ethereum’s new economic model could reshape crypto investing.
Metric 2: Block Time Stability
Before the Merge, block times averaged around 14 seconds, subject to miner hash power fluctuations. After transitioning to PoS, Ethereum standardized block production at exactly 12 seconds per block, with validators randomly selected by the protocol.
This consistency improved user experience and predictability across decentralized applications (dApps). More importantly, it eliminated the need for the “difficulty bomb” — a mechanism previously used to force upgrades by slowing down mining.
As a result, daily confirmed blocks increased from roughly 6,000 pre-Merge to over 7,000 post-Merge, setting new records for on-chain throughput. While this doesn’t solve scalability directly, it enhances reliability and paves the way for future upgrades like sharding.
Metric 3: Missed Blocks and Attestation Failures
Validator performance is crucial to network health. Two key indicators are missed blocks (when a validator fails to propose a block) and missed attestations (when a validator fails to vote on a block’s validity).
Post-Merge data shows:
- Missed block rate dropped by 36.7%, indicating strong validator participation.
- Attestation failure rates rose slightly due to increased validator count — now exceeding 491,461 active validators as of December 25, 2022.
Each validator stakes 32 ETH, totaling over 15.7 million ETH staked — about 13% of total supply. The network maintains a daily participation rate above 95%, reflecting robust consensus stability.
Validators earn rewards for both proposing blocks and submitting attestations. However, block proposal opportunities remain rare — only one validator is selected every 12 seconds across the entire network.
💸 MEV and Validator Economics
Metric 4: MEV-Boost Adoption Rate
The Merge introduced a new era of Maximal Extractable Value (MEV) with the separation of block building and proposing. Most validators now use MEV-Boost, a tool developed by Flashbots that connects them to third-party block builders via off-chain auctions.
These builders aggregate profitable transaction bundles — including arbitrage, liquidations, and frontrunning — then bid for the right to have their block included.
At launch:
- Five relays operated in the ecosystem.
- Flashbots controlled over 60% market share.
Today:
- Three new non-censoring, permissionless relays are live.
- Flashbots’ dominance has fallen below 30%.
- Over 80% of validators now use MEV-Boost — up from just over 10% at Merge.
This growing adoption highlights the economic incentive for validators to maximize returns through MEV participation.
Metric 5: Daily MEV Earnings
Despite infrastructure changes, actual MEV earnings have remained relatively flat since the Merge. This stability stems from broader market conditions:
- DeFi activity declined after the May 2022 Terra/Luna collapse.
- A brief spike occurred in November following the FTX crash, which triggered massive rebalancing and liquidations across DeFi protocols.
MEV profits are inherently tied to volatility and on-chain activity. With overall transaction volume subdued, opportunities for high-value MEV extraction have been limited.
However, as macroeconomic sentiment improves and user engagement rebounds, MEV revenues could rise significantly — especially if Layer 2 adoption accelerates.
Metric 6: Censored vs. Uncensored Blocks
A major concern post-Merge is transaction censorship. Some MEV relays, including Flashbots’ main relay, automatically filter transactions linked to addresses on the U.S. Office of Foreign Assets Control (OFAC) sanctions list.
Estimates suggest that over 57% of blocks in the past 100 days were produced using censored relays.
While censorship-resistant alternatives exist, widespread reliance on compliant relays raises questions about Ethereum’s neutrality as a permissionless global network.
Developers are actively exploring solutions like SUAVE (Single Unifying Auction for Value Expression) to decentralize MEV and reduce centralization risks.
🔐 Validator Dynamics and Staking Landscape
Metric 7: Staking Yields
Post-Merge, validators earn rewards from three sources:
- Base protocol rewards (from consensus layer)
- Priority fees (tips)
- MEV rewards
Total staking yield has increased from ~4% pre-Merge to between 5–6% annually. While lower than initial projections of double-digit returns, this reflects reduced gas fees and lower network utilization.
Notably, yields spiked briefly in early November during the FTX crisis — proving that during high-volatility events, MEV can significantly boost returns.
Going forward, yield levels will depend on:
- User adoption
- DeFi activity
- Layer 2 growth
- Fee market dynamics
👉 Learn how staking rewards could evolve after Shanghai upgrades unlock withdrawals.
Metric 8: “Staking-as-a-Service” Market Share
Despite a 15% increase in total staked ETH since the Merge, market concentration remains unchanged:
- Lido controls ~30% of all validators.
- Major players like Coinbase and Kraken maintain steady shares.
This suggests that while individual staking is accessible, institutional and liquid staking providers continue to dominate due to ease of use and liquidity benefits.
Decentralization advocates remain concerned about single points of failure — especially if regulatory actions target centralized staking services.
Metric 9: Block Builder Centralization
Block building has become highly centralized post-Merge:
- Over 80% of blocks are built off-chain by third-party builders like Flashbots, BloXroute, and Eden Network.
- Validators act primarily as proposers, accepting pre-built blocks from relays.
This architectural shift increases efficiency but introduces new trust assumptions and regulatory scrutiny risks.
Efforts are underway to promote decentralized builder ecosystems and mitigate centralization threats through open-source tooling and community-driven relays.
Metric 10: Validator Queue and Exit Rate Limit
Four months after the Merge, active validator count surpassed 458,752, triggering an increase in the exit rate limit coefficient from 6 to 7 per epoch.
Now:
- Up to 1575 validators can enter or exit per day (up from 1350).
- When validator count reaches 524,288, limits will rise again to allow faster churn.
This dynamic adjustment ensures network stability even during large-scale inflows or outflows — critical for handling mass withdrawals after Shanghai.
🔮 The Road Ahead: Preparing for Shanghai Upgrade
The next major milestone is the Shanghai/Capella upgrade, expected in Q1 2025. Its primary feature? Enabling withdrawals of staked ETH and rewards — a long-awaited function since the Beacon Chain launched in December 2020.
Partial Withdrawals
Validators with updated withdrawal credentials (format 0x01) will automatically receive:
- Consensus layer rewards
- Sent directly to their linked Ethereum execution address
No manual action required. Each block supports up to 16 withdrawals or credential updates, meaning full processing across all validators takes ~100 hours.
Full Withdrawals
To fully withdraw staked ETH:
- Validator must exit first (subject to rate limits)
- Must have
0x01withdrawal credentials - Processed in queue at up to 7 exits per epoch
Currently, 1,084 validators have already exited — waiting only for Shanghai activation. These represent:
- ~864 voluntary exits (to avoid penalties)
- ~220 slashed validators (for protocol violations)
Once live, expect a wave of credential updates, exits, and withdrawals — testing Ethereum’s ability to manage large-scale state transitions smoothly.
❓ Frequently Asked Questions (FAQ)
Q: Did Ethereum become deflationary after the Merge?
A: Not consistently — but it can be. With low issuance (~1800 ETH/day) and sustained burning from transaction fees, Ethereum approaches deflation during high usage periods. True deflation depends on network demand.
Q: Can I unstake my ETH after the Merge?
A: Not yet. Full unstaking functionality arrives with the Shanghai upgrade in early 2025. Until then, staked ETH remains locked.
Q: Is MEV harmful to Ethereum users?
A: MEV itself is neutral — it represents value extracted from transaction ordering. However, certain forms like frontrunning hurt retail users. Solutions like SUAVE aim to make MEV fairer and more transparent.
Q: How secure is Ethereum after moving to PoS?
A: More than ever. With over 15 million ETH staked (~$24 billion), attacking the network would require enormous capital — making it economically irrational.
Q: Will staking rewards decrease further?
A: Rewards adjust based on total staked ETH. As more join, individual returns may decline slightly — but MEV and fee income add upside potential during active markets.
Final Thoughts
The Merge was not an endpoint — it was a foundation. In its first 100 days, Ethereum proved its resilience, slashed its environmental footprint, and redefined its economic model.
Yet challenges remain: centralization in block building, transaction censorship concerns, and yield expectations unmet by current market conditions.
With Shanghai on the horizon, Ethereum stands at another inflection point — one that will complete the validator lifecycle and unlock unprecedented flexibility for stakers worldwide.
As development continues toward full scalability via rollups and sharding, Ethereum’s journey toward becoming a secure, efficient, and truly decentralized world computer is far from over.
Core Keywords: Ethereum Merge, proof-of-stake, MEV, staked ETH, Ethereum Shanghai upgrade, validator rewards, block time, ETH issuance