The Merge represented the Ethereum network’s transition from proof-of-work to proof-of-stake. 218 days later, more than 103,092 ETH has been eliminated from the supply of the world’s largest altcoin.
At current prices, this amounts to a little over $197 million. Deflation on the network is on the rise as the supply declined by 0.146% per year.
- According to the latest data from the Ethereum monitoring site ‘ultrasound.money,’ the current supply of ether stands at nearly 120,416,113 million coins.
- The currency burn rate over the last 30 days was found to be at 1,125k ETH and a supply growth of -0.37%.
- At this pace, the Ethereum supply is expected to reach 118.1 million by the year 2025.
- Issuance rewards for stakers, on the other hand, will be at 3.9% per year, while the burn rate for the non-stakers will stand at 1.8% per year.
- Contrastingly, if Ethereum had not undergone the Merge and instead continued to rely on miners to secure the network, the supply of the token would have increased by more than 2.5 million ETH, which translates to an astonishing $4.9 billion in the current market value.
- ETH’s supply, for one, would have increased by 3.53% every year.
- While the Merge was indeed responsible for the reduction in ETH supply by a considerable amount, the aspect of burning ether can be attributed to the Ethereum Improvement Proposal 1559, which was implemented via the London upgrade in August 2021. Its main purpose is to slash inflation on the Ethereum network and exert deflationary pressure on the token’s supply.
- Meanwhile, the Shapella upgrade on April 12 enabled stakers to unlock their staked Ether. The exodus of tokens following the event slowed down.
- Within a week, the amount of staked ether trumped the number of ETH being withdrawn for the very first time.