Ethereum’s Latest Upgrade Decreases Total Supply of Ether
Ethereum’s most recent upgrade, Dencun, was activated on March 13. This upgrade has resulted in a significant decrease in the total supply of ether, according to data from CryptoQuant cited by CNBC. The total supply of ether is now at its lowest level since August 2022. This decline in supply is mainly attributed to the implementation of the proof-of-stake consensus mechanism, known as The Merge.
Since the activation of The Merge, the rate at which the ether supply is declining has been the fastest since May 2023. Over the past 30 days, the ether supply has decreased at a rate of 0.872% per year. This decrease is primarily due to high activity on the Ethereum network, resulting in high transaction fees and more fees being burnt.
In terms of numbers, more than 1.56 million ether has been burned since The Merge, while less than 1.12 million ether has been issued. As a result, there has been a net decline of over 446,000 ether, worth nearly $1.62 billion at current prices.
Ethereum’s On-Chain Metrics Are Hot 🔥
While Solana’s network activity has been grabbing attention, Ethereum’s on-chain metrics have remained noteworthy:
- A seven-day moving average of transactions on the Ethereum network is near its 12-month high recorded in January. Yesterday alone, 1.26 million transactions were recorded on Ethereum.
- The number of active addresses on the Ethereum network is also at year-to-date and 12-month highs. Approximately 540,000 active addresses were recorded recently.
- The number of new addresses on the Ethereum network has also reached year-to-date and 12-month highs. Over 120,000 new addresses were created on the network.
- Ethereum’s on-chain volume has surged to new year-to-date and 12-month highs, with over $7 billion in volume recorded recently.
These metrics indicate a significant level of activity and engagement on the Ethereum network, highlighting its continued relevance and popularity in the crypto space.
Hot Take: Ethereum’s Supply Decrease and On-Chain Metrics Signal Strength 💪
Ethereum’s recent upgrade, Dencun, has successfully reduced the total supply of ether. The implementation of the proof-of-stake consensus mechanism has led to a significant decline in supply, with more ether being burned than issued. This decrease is attributed to high activity on the Ethereum network, resulting in high transaction fees and increased fees being burnt.
Furthermore, Ethereum’s on-chain metrics are also indicating strength and growth. The network is experiencing a high number of transactions, active addresses, new addresses, and on-chain volume. These metrics highlight the continued relevance and popularity of Ethereum in the crypto market.
Overall, Ethereum’s supply decrease and strong on-chain metrics demonstrate its robustness as a blockchain platform and its ability to attract users and developers. As the crypto space evolves, Ethereum remains at the forefront of innovation and adoption.
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