Ethereum’s Circulating Supply Surges Amid Shift to PoS
While Ethereum hasn’t been quite consistent with its bullish trajectory in recent weeks, its circulating supply has experienced a significant increase. According to data from Ultrasoundmoney, ETH’s circulating supply has soared to over 120.72 million ETH as of today. This surge in supply comes at a time when Ethereum is undergoing a transition from the proof-of-work (PoW) to proof-of-stake (PoS) model, marking a notable shift in the network’s dynamics.
Supply Increase, Factors Behind the Surge
The rise in Ethereum’s total supply to 120.72 million ETH, as reported by Ultrasound.money, is a reflection of the network’s increasing activity over the past month. During this period, Ethereum witnessed the issuance of 77,102 ETH, with 19,402 ETH being removed from circulation through a burning mechanism introduced in the network’s recent London Hard Fork. The net increase of approximately 57,653 ETH indicates a slight uptick in the annual supply growth rate from 0.58% to 0.69% in the last 7 days.
- The surge in total supply is driven by increasing network activity
- Ethereum has transitioned from PoW to PoS model
- The issuance of new ETH is boosted by staking rewards
Rewards for Participation and Staking
With Ethereum’s move to the PoS model, the network has not only enhanced its security but has also increased rewards for participation. Currently, around 33.9 million ETH are staked in the network, generating significant rewards in the form of newly issued ETH. This widespread staking activity is a major contributing factor to the surge in Ethereum’s total supply. Moreover, the phenomenon of restaking, where participants reinvest their staking rewards back into the network, further amplifies the issuance of new ETH, leading to an increase in overall supply.
Market Performance of Ethereum
Despite the supply surge, Ethereum has been experiencing a gradual price increase, climbing from $2,500 last Thursday to the current trading price of $2,652, showcasing a 9.3% increase in the past 7 days. This price surge has also positively impacted Ethereum’s market cap valuation, witnessing a nearly $20 billion spike over the same period. However, the daily trading volume for ETH has experienced a decline from over $21 billion to $12.8 billion in the past week.
- Price of Ethereum has seen a steady increase
- Market cap valuation has spiked significantly
- Daily trading volume has decreased recently
Ethereum’s Future Outlook
Despite the fluctuations in trading volume, many analysts in the crypto space remain optimistic about Ethereum’s future prospects. Notably, a prominent analyst has set a target price of $3,000 for ETH, suggesting that Ethereum is poised for a major rally. The analyst highlighted a “CME futures GAP” above, indicating a potential upward movement in the price of Ethereum as market conditions evolve.
Hot Take: Ethereum’s Supply Surge and Market Performance
As Ethereum continues its transition to the PoS model, the surge in its circulating supply has become more evident. The increase in staking activity and the issuance of new ETH have contributed to the growth in total supply. Despite the challenges posed by changing market dynamics, Ethereum’s market performance remains robust, with price gains and increased market cap valuation. Keep an eye on Ethereum as it navigates through these developments and positions itself for potential growth in the crypto market.
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