– The supply of Ether has hit a new low since the historic Shanghai upgrade of the Ethereum (ETH) network, witnessing a decline of more than 309,500 coins since September last year.
– Nearly 1.195 million ETH have been burned since the transition to the Proof of Stake consensus on September 15, 2022.
– The burn rate has outpaced new Ether issuance by approximately 30%, with the network issuing around 885,000 ETH as staking rewards during the same period.
– ETH’s current supply stands 56,000 ETH lower than its recent peak of around 120.27 million on October 31.
– The decrease represents an 18% reduction in Ethereum’s supply since the Shanghai upgrade over the past six weeks.
– The recent surge in burned ETH can be attributed to increased on-chain trading, primarily driven by the growing adoption of trading bots.
– Uniswap transactions have been the largest contributor to burned ETH in the last 30 days, accounting for approximately 10% of the total ETH destroyed.
– The Shanghai upgrade aimed to make Ethereum a deflationary network by replacing Proof of Work miners and revamping its tokenomics.
– The upgrade resulted in a significant reduction of new Ether issuance, making the network deflationary through the burning of base transaction fees.
– Ethereum demonstrated the potential for deflationary behavior, with the supply peaking at nearly 120.534 million ETH three weeks later after the Shanghai upgrade.
– Altcoin leader Ethereum also notched an increase in institutional inflow in recent weeks as its asset price broke through the $2,000 mark.
– NFT volumes posted a turnaround from plunging volumes in previous months, reaching $0.91 billion last month, marking a 200% growth.
The supply of Ether has decreased significantly since the Shanghai upgrade of the Ethereum network, with approximately 1.195 million ETH being burned since the transition to the Proof of Stake consensus. This has resulted in a decrease of 18% in Ethereum’s supply over the past six weeks. The surge in burned ETH is attributed to increased on-chain trading, driven by the growing adoption of trading bots. Uniswap transactions have been the largest contributor to burned ETH in the last 30 days. The Shanghai upgrade aimed to make Ethereum a deflationary network by replacing Proof of Work miners and revamping its tokenomics. Following the upgrade, Ethereum demonstrated deflationary behavior, with the supply peaking at nearly 120.534 million ETH. The burn rate accelerated in early 2023, resulting in a decrease of approximately 276,500 ETH. Despite a slight inflation in September and October, Ethereum’s on-chain activity experienced a resurgence in November, driven by bullish market conditions, resulting in a significant acceleration in the burn rate. Additionally, there has been a surge in DeFi volumes and institutional funds moving into digital asset products, with Solana, Ethereum, Optimism, and Avalanche experiencing gains in DeFi TVL. NFT volumes have also seen a turnaround, with a 200% growth in volumes.
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