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.

5.0/5

(2 votes)

Latest

Trade To Earn 300,000 Usd On Bingx

Airdrops | Editor Choice

Trade to Earn 300,000 USD on BingX

Join Trade to Earn on BingX to share in rewards of up to 300,000 USD!

Cz Considers Creating A Memecoin On Bnb Chain Inspired By Me

News | Editor Choice

CZ Considers Creating a Memecoin on BNB Chain

In response on X, former Binance CEO CZ is considering creating a memecoin inspired by his pet dog, which immediately sparked excitement in the community.

Azcnews Breaking Trump Appoints Former Bitfury Executive To Lead U.s. Banking Regulator

News | Editor Choice | Policy & Regulations

Trump Appoints Former Bitfury Executive to Lead U.S. Banking Regulator

Donald Trump nominates former Bitfury executive Jonathan Gould to lead the OCC, signaling a potential shift in banking regulation with a crypto-savvy leader.

Earn 30 Ip (over 100 Usd) On Bybit For New Users

News | Editor Choice

Earn 30 IP (over 100 USD) on Bybit for New Users

Join to Receive 30 IP (Valued at Over 100 USD) for New Users on the Bybit Exchange.

Azcnews Breaking Bitcoin’s Rebound Sparks A Broader Market Recovery

News | Bitcoin | Editor Choice

Bitcoin’s Rebound Sparks a Broader Market Recovery

Bitcoin and the crypto market have rebounded following the release of a U.S. macroeconomic report.