The ETH Supply Reaches Lowest Level Since August 2022

Ethereum's Dencun upgrade is proving to be highly successful, resulting in a substantial decrease in the supply of ether on the network.

Azcnews

This past week, Ethereum made history with the release of the long-awaited Dencun upgrade to the mainnet, bringing a sense of relief and excitement to the user community. This upgrade is designed to mark an important step in the network’s expansion strategy, promising to enhance the scalability of the Layer 2 chain and usher in a new age of use cases.

Now, with the birth of Dencun, the Ethereum network has begun to reap the benefits of the sudden decrease in ether supply.

Ethereum’s latest upgrade, Dencun, left a strong impression in its first week of launch, especially in terms of reducing the total supply of ether. According to information from CryptoQuant, by midweek, the total ether supply had dropped to its lowest level since August 2022.

The last time ether’s supply decreased like this was during Ethereum’s most important moment, when the network switched from the original proof-of-work consensus to proof-of-stake, also known as Consolidation.

Ethereum Total Supply
Ethereum Total Supply

Over the past month, ether supply has decreased by 0.872%, which is the fastest decrease since May 2023. In contrast, since The Merge, the rate of decrease has been only 0.246%.

This rapid decline can be explained by daily transactions on Ethereum hitting record levels, with an average of over 1.2 million transactions, leading to more transaction fee burns and subsequently, total supply reduced.

Additionally, as of August 2022, more than 1.56 million ether were burned, while only 1.12 million ether was issued, resulting in a net decrease of more than 446,000 ether, or nearly 1.62 billion USD at current price.

Related: Ethereum Dips Below $4000 But Signals Remain Positive

If Ethereum continues to remain active and ether supply continues to decrease, this could lead to a significant growth in the token’s price. At this time, the price of Ethereum surpassed the $3600 mark.

Why is this important?

The Dencun upgrade marks the biggest step forward the Ethereum network has taken since The Merge. With a commitment to significantly reduce costs for the Layer 2 chain, coupled with a sharp increase in network activity and a decreasing ether supply, it can be expected that the price of Ethereum will continue to increase.

(2 votes)

5.0/5

(2 votes)

Latest

Binance.us Accused Of Political Favoritism After Listing Trump Family’s Usd1 Token

News | Editor Choice | Policy & Regulations

Binance.US Accused of Political Favoritism After Listing Trump Family’s USD1 Token

Binance.US is facing a wave of fierce criticism after listing the Trump family’s USD1 stablecoin, just a week after Donald Trump’s controversial pardon of Changpeng Zhao — a move many see as a “political favor” between the White House and the crypto world.

Spacex Moves $31 Million In Bitcoin, What Is Elon Musk Planning

News | Bitcoin | Editor Choice

SpaceX Moves $31 Million in Bitcoin, What Is Elon Musk Planning?

SpaceX’s sudden $31 million Bitcoin transfer within just one week has sent shockwaves through the market, sparking speculation that Elon Musk may be preparing for a mysterious strategic move.

21shares Files For Hype Etf, While Bitwise’s Solana Etf Records

News | Altcoin | Editor Choice

21Shares Files for HYPE ETF, While Bitwise’s Solana ETF Records

The crypto ETF market is heating up as 21Shares and Bitwise roll out new products, signaling Wall Street’s growing interest in altcoins.

Bitcoin Eyes A Hopeful November Amid Fed Division On December Rate Cut

News | Bitcoin | Editor Choice

Bitcoin Eyes a Hopeful November Amid Fed Division on December Rate Cut

Following the Federal Reserve’s widely expected rate cut, the crypto market has yet to show signs of recovery as internal divisions over a potential December easing weigh on sentiment, making Bitcoin’s short-term outlook more cautious than ever.

Ethereum’s Key Changes After The Fusaka Upgrade

News | Altcoin | Editor Choice

Ethereum’s Key Changes After the Fusaka Upgrade

The Fusaka upgrade marks a pivotal step in Ethereum’s journey toward large-scale scalability, promising faster transaction speeds, enhanced security, and laying the foundation for the next explosive phase of the world’s leading blockchain.

Screenshot 2025 10 20 091338