When Ethereum completed The Merge, it wasn’t just a routine upgrade. It marked a significant technical shift—moving from proof of work to proof of stake. That cut the network’s energy use by more than 99%, a big moment for crypto’s environmental critics. But here’s the thing: The Merge wasn’t an ending. It was the beginning of something much bigger.
We’re now in the post-Merge phase, where the real build-out happens. Scalability is next on the roadmap, with upgrades like sharding and rollup integrations aimed at reducing congestion and fees. Staking has gone mainstream, but now validators and developers have to optimize performance, security, and access.
In the wider crypto arena, ETH sits in a more serious spot. Bitcoin still owns the digital gold narrative, but Ethereum is arguably the platform with the most active development and use cases—from DeFi and NFTs to enterprise experiments. It’s the backbone for a large chunk of Web3 activity. The Merge proved it could evolve. Now it’s about delivering on that momentum.
What Comes After the Merge: Surge, Verge, Purge, and Splurge
The Merge marked a major milestone for Ethereum, but it was only the beginning. The next phase of Ethereum’s development is known as the Ethereum roadmap, and it includes four major stages: Surge, Verge, Purge, and Splurge. Each phase introduces upgrades designed to make the network more scalable, accessible, and efficient.
The Four Phases at a Glance
- Surge: Focuses on scalability, particularly through rollups and sharding.
- Verge: Introduces Verkle trees to improve data storage and reduce node requirements.
- Purge: Aims to minimize network congestion by clearing old, unnecessary data.
- Splurge: Includes miscellaneous upgrades that ensure smooth operation after the major changes.
Sharding: Ethereum’s Scalability Multiplier
Sharding is the key component of the Surge. By splitting the Ethereum network into smaller pieces called shards, Ethereum can process multiple transactions and run computations in parallel. This change has the potential to dramatically increase transaction throughput while reducing costs.
Benefits of sharding:
- Reduces the load on individual nodes
- Enables parallel processing of transactions
- Improves the capacity of the network to handle more users and dApps
Expert Timeline: When Will It Happen?
While these upgrades sound promising, their implementation will take time. According to Ethereum developers and analysts:
- Surge and sharding are expected to roll out in stages starting from late 2024 into 2025.
- Verge and Purge may follow in the subsequent years, depending on the stability of prior phases.
- Full scalability benefits will likely be realized gradually, not all at once.
Ethereum is playing the long game. The roadmap is ambitious, but it is rooted in careful planning and testing. Developers remain optimistic, but realistic: meaningful scalability may still be a few years away.
Why It Matters for Creators and Users
For creators relying on Ethereum-based platforms, these upgrades could significantly reduce gas fees and increase user engagement. As scaling progresses, interactions such as minting NFTs, running smart contracts, or hosting virtual experiences may become faster and more affordable.
Ethereum’s shift from proof of work to proof of stake wasn’t just a tech update—it was a full-blown rewire of the network’s DNA. First and most obviously, energy use plummeted. By ditching mining, Ethereum slashed its power consumption by over 99 percent. That cleared the way for it to be taken seriously in environmental and enterprise spaces where carbon footprints matter.
Beyond the energy win, the transition boosted scalability and transaction speed. Proof of stake allows the network to process more transactions per second with fewer bottlenecks, laying groundwork for future upgrades like sharding. With these changes, Ethereum is positioning itself not just as a decentralized finance backbone but also as a platform ready to support consumer-scale dApps.
Still, not everyone’s cheering. Some argue that proof of stake favors the wealthy and undermines decentralization, since those with more ETH have more influence. It’s a fair concern—and one the dev community continues to wrestle with. But overall, the sentiment within the developer and user space has leaned positive. Builders see the merge as a foundation, not a finish line.
Ultimately, it’s a bet on long-term sustainability: lower power, higher throughput, and a chance at wider adoption without losing the core ethos of decentralization.
The switch to Proof of Stake transformed Ethereum’s energy profile overnight. Supporters call it a win for ESG goals, pointing to the network’s reduced electricity use—reportedly down by over 99 percent. That’s a big number, and it plays well with institutions under pressure to clean up their carbon footprints. But scratch beneath the surface, and things get murkier. ESG isn’t just about energy. It’s also about governance and transparency, both of which are still evolving in crypto.
Post-Merge, financial institutions are circling. Major banks and investment firms are starting to lean in, testing Ethereum for everything from tokenized bonds to compliance tools. They’re drawn by the cleaner image but also the infrastructure upgrades. This isn’t a crypto free-for-all anymore—Ethereum is starting to look like something traditional finance can plug into.
With that interest comes pressure. Institutional buyers want stability. That could mean higher base fees, more predictable gas pricing, and maybe even stronger pushes toward centralization. The math is simple: when whales dominate block space, decentralization risks getting squeezed. Whether Ethereum can stay true to its roots while serving both hobbyists and hedge funds—that’s the real test.
Ethereum continues to lead the smart contract ecosystem, and that still matters in 2024. Developers, protocols, and serious capital remain anchored to Ethereum because it offers unmatched security, decentralization, and network effects. It’s the chain where innovation launches first, and trust is highest. For creators and builders alike, Ethereum isn’t just old tech—it’s still the gold standard for smart contract execution.
But activity is shifting. Layer 2 solutions like Arbitrum, Optimism, and zero-knowledge rollups are gaining serious traction. They offer faster speeds and lower fees, without pulling users off Ethereum entirely. Instead, they extend its reach while reducing its limitations. This makes multi-layer deployment a smart move for any creator looking to scale flexibility and keep costs low.
NFTs remain a wildcard. Ethereum remains the top choice for high-value digital assets—not just for prestige, but for liquidity and collector trust. Even as other chains slice transaction costs, premium NFT drops still launch on Ethereum proper. Collectors care about legacy and provenance, and the market hasn’t forgotten where the biggest plays happened.
To get the broader market picture, see the related read: How Macroeconomic Trends Are Shaping Crypto Market Behavior
Ethereum isn’t just dealing with technical upgrades. It’s staring down regulatory uncertainty that could reshape how staking and validation work. In the U.S., the SEC continues to signal interest in treating staking rewards like securities. That has spooked both individual stakers and large platforms that offer staking-as-a-service. Globally, governments are circling too, crafting frameworks to either embrace or control decentralized finance. Nobody knows exactly where the chips will fall.
Then there’s the centralization problem. While Ethereum shifted to proof-of-stake to become greener and more scalable, it’s also handed a lot of power to a few large staking entities. Big validators and liquidity-heavy platforms are amassing enough control to potentially distort on-chain governance. In a system meant to be distributed, that’s a serious tension.
How Ethereum responds will depend on two things: tech adaptations and macro outcomes. If the network finds ways to reward smaller validators and ease pressure from regulators, it holds strong. But if governments clamp down and centralization tightens, the protocol may have to bend to survive.
Vitalik Buterin and the Ethereum core dev team are not resting on past wins. Their focus heading into 2024 is clear: make Ethereum leaner, faster, and more usable at scale. That means driving forward upgrades like danksharding, reducing fees without compromising decentralization, and turning Ethereum into a stronger backbone for application-layer innovation in Web3.
These upgrades aren’t just for crypto diehards. They’re critical for improving the real-world performance of Web3 platforms, from defi protocols and gaming layers to identity systems and DAOs. As Ethereum evolves, it’s laying down the tracks for other decentralized infrastructure to follow. Think of it as the plumbing behind a new internet that’s attempting to be trustless by default.
So what does all this mean if you’re in the space? If you’re a builder, you should already be prototyping with Layer 2s and modular architectures. If you’re an investor, start evaluating projects through the lens of post-merge Ethereum—cheaper transactions and broader adoption are no longer hypothetical. And if you’re just watching from the sidelines, understand this: Ethereum’s next chapter isn’t about speculation. It’s about usability at scale.