Ethereum's Merge: Market liquidity, efficiency and volatility in the Proof of Stake Era

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 247
Issue: C

Authors (4)

Liu, Bin (not in RePEc) Prodromou, Tina (not in RePEc) Suardi, Sandy (University of Wollongong) Xu, Caihong (not in RePEc)

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study analyzes the impact of Ethereum's Merge upgrade on market liquidity, efficiency and volatility in cryptocurrency markets. The Merge, which transitioned Ethereum from Proof of Work to Proof of Stake, aimed to improve scalability, security, and energy efficiency. Findings show a significant improvement in Ether's liquidity and a slight enhancement in market efficiency post-Merge, along with reduced trading activity and intraday volatility compared to Bitcoin. These results offer insights into investor behavior, confidence, and external market influences, relevant for market participants and policymakers.

Technical Details

RePEc Handle
repec:eee:ecolet:v:247:y:2025:i:c:s0165176525000394
Journal Field
General
Author Count
4
Added to Database
2026-01-29