Ethereum Price Hits €1,695 as Network Transitions to Proof of Stake

Ethereum's move to Proof of Stake aims to improve efficiency and reduce environmental impact

Published on Mar. 3, 2026

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Ethereum, the second-largest cryptocurrency by market cap, has seen its price drop by 4.03% in the past 24 hours, with the current price standing at €1,695.67. The Ethereum network recently completed its transition from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) model, known as the 'Ethereum Merge', in a bid to improve the network's efficiency and reduce its environmental impact.

Why it matters

The Ethereum Merge is a significant milestone for the cryptocurrency industry, as it marks the shift of the second-largest blockchain network to a more energy-efficient consensus mechanism. This transition is expected to have far-reaching implications, including reduced energy consumption, lower transaction fees, and potentially increased adoption of Ethereum-based applications and services.

The details

The Ethereum Merge involved merging the original Ethereum blockchain, which used a PoW consensus, with the Beacon Chain, a parallel PoS blockchain that was launched in 2020. This process has replaced the energy-intensive mining process with a system where users 'stake' their Ether tokens to validate transactions and earn rewards. The Merge is the first phase of a multi-year plan to improve Ethereum's scalability and sustainability, with further upgrades, such as 'sharding', planned for the future.

  • The Ethereum Merge was executed on September 15, 2022.
  • The Beacon Chain, which laid the groundwork for the Merge, was launched on December 1, 2020.

The players

Vitalik Buterin

The co-founder of Ethereum, who conceptualized the idea for the blockchain network in 2013 when he was just 19 years old.

Gavin Wood

An early Ethereum co-founder who served as the project's first Chief Technology Officer and created Solidity, the primary programming language for Ethereum smart contracts.

Charles Hoskinson

Another Ethereum co-founder who later left the project to found the Cardano blockchain network.

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What they’re saying

“The Ethereum Merge is a landmark achievement for the cryptocurrency industry, paving the way for a more sustainable and efficient blockchain network.”

— Vitalik Buterin, Co-founder, Ethereum (Twitter)

“The transition to Proof of Stake is a crucial step in Ethereum's roadmap, and we're excited to see how it will impact the ecosystem in the years to come.”

— Gavin Wood, Co-founder, Ethereum (Ethereum Blog)

What’s next

The Ethereum team is now focusing on further upgrades, such as 'sharding', which aims to improve the network's scalability by splitting the main blockchain into multiple 'shard chains'.

The takeaway

The successful Ethereum Merge represents a significant milestone in the evolution of the cryptocurrency industry, showcasing the blockchain's ability to adapt and improve its sustainability. As Ethereum continues to enhance its capabilities, it is poised to play an even more crucial role in the development of decentralized applications and the broader adoption of blockchain technology.