Ethereum

Merge

The Ethereum network’s transition from proof-of-work to proof-of-stake, also known as the Merge, has led to a significant reduction in the supply of the world’s largest altcoin, Ethereum (ETH). In just 218 days, over 103,092 ETH has been eliminated from the token’s supply, which is equivalent to more than $197 million at current prices. This reduction in supply is due to the aspect of burning ether, which was introduced via the Ethereum Improvement Proposal 1559, implemented through the London upgrade in August 2021. Its purpose is to reduce inflation on the Ethereum network and put deflationary pressure on the token’s supply. 
The current supply of ether, according to the Ethereum monitoring site ‘ultrasound.money,’ is nearly 120,416,113 million coins, with a deflation rate of 0.146% per year. In the last 30 days, the currency burn rate was found to be at 1,125k ETH, resulting in a supply growth rate of -0.37%. If this pace continues, the Ethereum supply is expected to reach 118.1 million by 2025. While the Merge was responsible for the significant reduction in ETH supply, it is the burning aspect that has contributed to deflation on the network. 
On the other hand, stakers on the Ethereum network will receive issuance rewards of 3.9% per year, while non-stakers will face a burn rate of 1.8% per year. If Ethereum had not undergone the Merge and instead continued to rely on miners to secure the network, the token’s supply would have increased by more than 2.5 million ETH every year, which is equivalent to $4.9 billion in current market value. ETH’s supply would have increased by 3.53% annually, which is significantly higher than the current deflation rate. 
Recently, the Shapella upgrade enabled stakers to unlock their staked Ether, which resulted in a slowdown in the exodus of tokens. Within a week, the amount of staked Ether exceeded the number of ETH being withdrawn for the first time. This event highlights the growing interest in staking on the Ethereum network, which has become an increasingly popular way to earn passive income on cryptocurrencies. 
In conclusion, the Merge has not only improved the security and efficiency of the Ethereum network but has also had a significant impact on the token’s supply. With deflation on the rise, the burning aspect of Ethereum Improvement Proposal 1559 is playing a crucial role in exerting deflationary pressure on the token’s supply. Despite the reduction in supply, staking on the Ethereum network continues to grow in popularity, providing an attractive option for earning passive income on cryptocurrencies. 
&nbsp; 
The post <a rel="nofollow" href="https://bitcoinworld.co.in/ethereum-post-merge-over-100k-coins-eliminated-from-eths-supply/">Ethereum Post-Merge: Over 100K Coins Eliminated From ETH’s Supply</a> appeared first on <a rel="nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Ethereum Post-Merge: Over 100K Coins Eliminated From ETH’s Supply

ItsBitcoinWorld

Andre artikler udgivet 22. apr. 2023

Donald Trump ‘Series 2’ NFTs floor price crumbles more than 10% below purchase price

Unleash Your Inner Hero: Join the OK Heroes Club on Zealy for an Unforgettable Web3 Adventure

SBF Constantly Shaded CZ Before FTX Collapsed: Binance CSO

Avalanche price analysis: AVAX continues crash to drop below $17

How to Read the Bitcoin Stock-to- Flow Model

Cardano-Powered Algorithmic Stablecoin $DJED Achieves Major Milestone With Over 4 Million Coins C...

Join our free newsletter for daily crypto updates!