Ethereum

Solana

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum’s recent upgrade has led to a significant decrease in the total supply of ether.</li>
 <li>Increased Ethereum network activity has resulted in high transaction fees and a subsequent decrease in ether supply.</li>
</ul>
<p>The latest upgrade to Ethereum, Dencun, was activated in mid-March. However, it’s the previous upgrade that has significantly contributed to the decrease in the total supply of ether.</p>
<p>As of the middle of the week, the total ether supply has fallen to its lowest point since August 2022. This data was provided by CryptoQuant, as reported by CNBC.</p>
<h2 id="ethereum-s-major-upgrade">Ethereum’s Major Upgrade</h2>
<p>It was shortly after August 2022 that Ethereum underwent its most significant upgrade, transitioning from proof-of-work to proof-of-stake. This upgrade is commonly referred to as The Merge.</p>
<p>Currently, the rate of decline in ether supply is the fastest it has been since May 2023. Over the past month, the ether supply has been decreasing at a rate of 0.872% per year, as per data from ultrasound.money.</p>
<p>According to Julio Moreno, CryptoQuant’s head of research, this decrease is due to high transaction fees resulting from increased activity on the <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> network.</p>
<h2 id="decline-in-ether-supply">Decline in Ether Supply</h2>
<p>In terms of raw numbers, over 1.56 million ether has been burned since The Merge, while less than 1.12 million ether has been issued. This has resulted in a net decline of over 446,000 ether, equivalent to nearly $1.62 billion at current rates.</p>
<p>Despite the attention Solana is receiving, activity on the Ethereum network remains significant. The seven-day moving average of transactions on the Ethereum network is close to its 12-month high, recorded in January. On a single day, 1.26 million transactions were logged on the blockchain, which is the second-largest by market capitalization.</p>
<p>Moreno noted that high transaction activity leads to increased network fees, more fees being burned, and a decrease in total supply. In addition, the number of active and new addresses on the Ethereum network is at year-to-date and 12-month highs.</p>
<p>Furthermore, Ethereum’s on-chain volume has reached new year-to-date and 12-month highs, with more than $7 billion in on-chain volume recorded in a single day.</p>

Ethereum Activity Plummets, Pushing Ether Supply to Lowest Since Aug 2022

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