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

IF 2.1 4区经济学 Q2 ECONOMICS

Economics Letters Pub Date : 2025-02-01 DOI:10.1016/j.econlet.2025.112202

Bin Liu , Tina Prodromou , Sandy Suardi , Caihong Xu

引用次数: 0

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.

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来源期刊

Economics Letters ECONOMICS-

CiteScore

3.20

自引率

5.00%

发文量

348

审稿时长

30 days

期刊介绍： Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Economics Letters has been conceived and designed outside the realm of the traditional economics journal. As a Letters Journal, it consists of concise communications (letters) that provide a means of rapid and efficient dissemination of new results, models and methods in all fields of economic research.