ETH has just experienced a major milestone as over 100,000 coins have been eliminated from its supply. This is a significant achievement for this popular cryptocurrency and could have positive implications for its overall value in the market. It is a testament to the strength and credibility of the ETH network and its ability to adapt and evolve over time. This news is sure to be of interest to digital currency enthusiasts and investors alike.
Two Possible Headlines for this Article:
1. Ethereum’s Deflationary Trend Continues with More than 103,000 ETH Burned Since the Proof-of-Stake Transition
2. Ethereum Supply on the Decline as Deflationary Pressures Intensify Post-Merge
The Ethereum network’s Merge to proof-of-stake (PoS) has received unprecedented attention within the crypto industry. While PoS provides a greener alternative to PoW, the transition also had important implications for Ethereum’s monetary policy.
As per the latest data from the Ethereum monitoring site “ultrasound.money”, more than 103,092 ETH has been permanently removed from the circulating supply of Ethereum since the Merge. This significant burn rate amounts to a little over $100 million in current prices. The deflationary trend on the network is likely to persist, considering that the Ethereum supply decreased by 0.146% annually.
At present, the circulating supply of Ethereum stands at over 120 million coins. The currency burn rate over the last 30 days was recorded at 1,125k ETH, resulting in a supply growth of -0.37%. If the current pace of burning continues, the Ethereum supply is projected to reach 118.1 million by 2025. This deflationary development means that the token’s purchasing power could increase over time, which could potentially boost Ether’s price.
Furthermore, in terms of issuance rewards, stakers can expect 3.9% rewards per year, while non-stakers will experience a burn rate of 1.8% per year. If Ethereum had maintained the previous PoW model, the token supply would have increased by 2.5 million ETH, equivalent to $4.9 billion in the current market value. The supply of ETH would have increased annually by 3.53%, highlighting the negative effects of PoW on deflationary trends.
The reduction in ETH supply can be mostly attributed to Ethereum Improvement Proposal 1559, which aims to slash inflation on the Ethereum network by exerting deflationary pressure on the token’s supply. The London upgrade implemented this proposal back in August 2021, which considerably contributed to the reduction in Ethereum supply.
To sum up, Ethereum has witnessed a deflationary trend since the Merge, as the supply of Ether continues to decrease. While this development may benefit Ether holders in the long run, it also brings challenges for the Ethereum ecosystem, since the deflationary trend may discourage users from spending the token. Nevertheless, the positive impact on the market value of Ether remains apparent, as more and more investors secure Ether to benefit from the token’s deflationary monetary policy.