Ethereum has identified 120.52 million coins at the time of the Merge in September 2022. 217 days later, this offer has been revised downwards. Which means that ETH is becoming increasingly scarceand as a corollary will experience a bullish rally soon.
Total Ethereum supply reduced by 100,000 coins
In 2020, one of our colleagues at Tremplin.io conducted research on the total amount of Ethereum. At that time, finding such data was not easy at all. But his investigation made it possible to establish approximate values: around 112 million ETH.
By taking a walk on the site of Ethereum, we were able to find that there is 120,520,000 ETH at the time of the Blockchain Merge last September.
But CryptoPotatowhich relied on data taken from Ultra Sound Moneyrevealed yesterday that total Ethereum supply dropped by 100,000 coins.
At the time of writing, the Ethereum tracking site showed a current supply of 120,414,037 ETH. Note, however, that this statistic is changing rapidly.
Thus, during the 218 days post-Merge, total ether supply saw a downward revision of 105,963 coins. Multiply these coins to the current value of ETH, $1,852.89, and we have about 200 million dollars.
What had happened if there had been no Merge?
Had Vitalik Buterin’s team not successfully completed The Merge in September, total ETH supply would have experienced an increase of more than 2.52 million coins. That’s $5 billion.
Without the Merge, Ethereum’s native coin supply would also have seen an annual increase of 3.53%.
Fortunately, this merger did indeed take place, and it causes a 0.144% annual decline in total ETH supply.
The contribution of the Ethereum Improvement Proposal 1559
Certainly, the transition from Proof-of-Work to Proof-of-Stake has accelerated the changes at the level of the first blockchain in the world. But The Block also noted that the Ethereum 1559 improvement proposal is there for something. Born after the London upgrade of August 2021, EIP-1559 aims to reduce inflation on Ethreum and exert a deflationary bid on ETH supply.
EIP-1559 always requires base fee burn, in fact. Add to this the massive withdrawals of ETH caused by the Shapella hard fork and we have a very high scarcity level for ether.
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