The Ethereum supply is declining at the fastest pace in history: according to the Ultrasound.Money tracker, the ETH supply increased by -0.33% over the last month.
The flare mechanism to optimize gas usage was launched from EIP-1559 in mid-September 2022. After its implementation, the amount of ETH burned exceeded the number of mined coins, which means that the emission of tokens became negative or deflationary.
Ethereum supply down 72,000 ETH
Since the transition of Ethereum to the Proof-of-Stake consensus algorithm, the ETH supply has decreased by 72,186 coins, or about $130 million at current prices. According to forecasts, in a year it will decrease by another 1.3 million to 119 million tokens.
The Ethereum burn rate is currently around 123 ETH per hour, with 15% of the total burn coming from the Uniswap decentralized exchange.
On March 30, well-known crypto industry lawyer Ryan Berkmans tweeted a list of the achievements of the ecosystem, which is barely eight years old:
All this can be considered positive signs for the Ethereum blockchain, which has undergone a number of major changes over the past few years. The transition to Proof-of-Stake has accelerated its ambition to become the premier smart contract network in the market, with no other project coming close to achieving this success.
What happens to the price of ETH
Over the past 24 hours, the price of Ethereum has not changed much. At the time of writing, the asset is trading at $1,799.
ETH has gained 8% over the past two weeks, but it is still 63% below its November 2021 peak. However, the rise in investor interest in DeFi and the upcoming Shapella update could further boost the price of Ethereum.
Source: bitcoinlinux.com
