The amount of Ethereum being burnt is increasing. This has caused the issuance to reach its highest-ever level of deflation, which is shrinking the ETH supply.
The Ethereum supply is shrinking at its fastest-ever level. Deflation has hit record levels as ETH burning accelerates.
The burning was introduced with EIP-1559 in mid-September to optimize gas usage. The side effect is more Ethereum getting burnt via network usage than is being produced. This means that issuance is negative or deflationary.
According to the Ultrasound.Money Ethereum tracker, supply growth over the past month has been -0.33%. On a shorter daily time frame, deflation is closer to -0.5% at the moment.
Ethereum Supply Shrinks by 72,000 ETH
Since the Merge on September 15, Ethereum supply has decreased by 72,186 ETH, worth around $130 million at current prices.
By this time next year, the Ethereum supply is predicted to have decreased by a further 1.3 million ETH to around 119 million.
The current Ethereum burn rate is around 123 ETH per hour. Furthermore, the biggest gas guzzler at the moment is Uniswap, with around 15% of the total burn.
In terms of Ethereum staked, there are 17.9 million ETH locked on the Beacon Chain. This is an estimated $32 billion representing around 15% of the total circulating supply.
There have been concerns about an influx of ETH hitting markets following the Shanghai upgrade next month. However, this is unlikely to happen due to the phased release process, as explained by BeInCrypto recently.
The ‘Shapella’ upgrade will roll out on April 12. It combines changes to the Ethereum Virtual Machine (EVM), called ‘Shanghai,’ and the ‘Capella’ consensus layer. There are also upgrades to the Engine API that links the two layers.
On March 30, industry advocate Ryan Berckmans posted a list of achievements for the barely eight-year-old ecosystem:
ETH Price Outlook
Ethereum prices have not changed much over the past 24 hours. Nevertheless, the asset has reclaimed $1,800 again at the time of writing.
ETH prices are still largely in the shadow of their big brother, aping its market movements. The asset has made around 8% over the past fortnight but remains 63% down from its peak in November 2021.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
