The Triple Halving
Ether will become a more deflationary asset and will compete more with Bitcoin. The two blockchains have a radically different approach to operations. This process will be seamless, but eventually Ether inflation will fall by the equivalent of the triple halving of Bitcoin, this term was created by the friends of Ethereum.
The energy consumption of Ethereum will be reduced by 99.95%, which is important because it has long been a major criticism of cryptocurrencies. PoW is too energy-intensive, especially against the backdrop of the energy crisis.
The PoS algorithm can't be criticised here, because it uses less energy than a normal laptop. It’s important, because ESG (Environmental, Social, and Corporate Governance) rules have prevented many large investors from investing in PoW-based cryptocurrencies, while such institutions can work with PoW.
Increased APY for ETH stackers
With the implementation of The Merge, the payment mechanism for transactions on the network will change, they will now come not to hardware miners but to Ether stackers, according to preliminary calculations their APR will increase from 4% to 9-12%. This is an important driver of demand for Ethereum, especially when the underlying assets are showing negative returns.
Ethereum is becoming deflationary
Ethereum issuance will fall by 99%. The combination of locked ETH and triple halving creates an environment in which Ether becomes a sharply deflationary asset. Experts predict that Ether will issue less than one million coins per year (the actual number depends on the amount of Ether in the stacking).
The launch of native Layer 2 tokens will boost activity as users and investors will start to actively act to get tokens from these ecosystems, they will generate more transaction revenue for Ether, and again such developments appear to increase APY and burn Ethers. Higher yields, higher deflation, Layer 2 is an ideal addition for Ether.
All the above information is not financial advice.