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Cambridge Report Reveals Ethereum's Energy Consumption Dropped 99.98% Post-Merge

The Cambridge report says Ethereum's "The Merge" changed its consensus from proof‑of‑work to proof‑of‑stake, cutting the network's energy use by about 99.98%, a reduction of roughly three and a half orders of magnitude.

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What happened

The Cambridge report says Ethereum’s “The Merge” changed its consensus from proof‑of‑work to proof‑of‑stake, cutting the network’s energy use by about 99.98%, a reduction of roughly three and a half orders of magnitude.

Confirmed

Global impact / market context

Lower energy demand makes Ethereum more environmentally friendly, easing climate‑related criticism and potentially attracting businesses and investors who prefer sustainable blockchain platforms.

Analyst inference

The report appears while the broader crypto industry is under scrutiny for high carbon footprints, prompting interest in proof‑of‑stake designs that can lower operating costs and regulatory risk.

Analyst inference

What to watch

  1. Enterprise adoption of Ethereum for low‑carbon applications, which could increase demand for ETH and related services. Analyst inference
  2. Regulatory actions targeting crypto energy use, especially rules that may favor proof‑of‑stake networks. Analyst inference
  3. Performance of other proof‑of‑stake blockchains as investors compare their energy savings to Ethereum’s post‑Merge results. Analyst inference

Affected assets

  • ETH — Ethereum

Evidence