According to City Bank’s report, the transition volatility has remained subdued despite the high hopes after the Ethereum Merge was successful.
The merge involved the switch to a more energy-efficient proof-of-stake (PoS) consensus from a proof-of-work (PoW) process. Following the transition, rewards are now not given to the miners and the ETH issuance is estimated to plunge 90% to around 600,000.
ETH has become a yield-bearing asset after the removal of mining, with a current staking yield of 4.5%.
In the aftermath of the merge, the network activity has increased as ETH produces a yield for validators. However, the fees is still very low.