“Ethereum’s supply has increased to 120 521 725 ETH. The last comparable levels were observed in September 2022, before the update of The Merge. Source: Ultrasound.money. The metric exceeded the marks to the “merger” POS and Pow on 584 ETH. For the past two years after the apdeit and 144 days, the issue of coins was 1,948 221 ETH, and 1 947 636 ETH was withdrawn from circulation. After The Merge, Ethereum’s proposal reached a minimum […]”, – WRITE: Businessua.com.ua
Ethereum’s supply has increased to 120 521 725 ETH. The last comparable levels were observed in September 2022, before the update of The Merge.
Source: Ultrasound.money.
Metrics exceeded the marks to the “merger” POS and Pow on 584 ETH.
For the past two years after the apdeit and 144 days, the issue of coins was 1,948 221 ETH, and 1 947 636 ETH was withdrawn from circulation.
After The Merge, Ethereum proposal reached a minimum in April 2024 at 120 064 500 ETH, after which a trend was reversed.
Jehun Ha with Presto Research reminded The Block that inflation began to grow again a month after Dencun hardware.
Dencun update has lowered the commission on L2 networks at times
The current dynamics of ETH’s proposal throws a shadow on the narrative about Ethereum as a deflational asset that is better than a bitcoin savings.
To Dencun, users paid a commission in the form of a gas price multiplied by its quantity. Much of the fees were removed by burning.
“From Dencun to Ethereum has been added Blob-Transactions for L2. They use a separate unit of “Blob Gas”, which is different from the standard “gas” used to normal operations, ” – explained HA.
According to the expert, the change has led to a decrease in the share of burned commissions, as a prominent part of the onchin-data moved to BLOB objects.
“As a result, even if the overall activity of the network remains high or increases, the balancing effect that has previously limited the pure ETH issue is not so pronounced,” he added.
HA stressed that the current situation is not a cause for concern, since Ethereum has not yet had a decrease in the number of transactions, despite the sharp increase in the asset’s supply.
“The future Hardforte Petra of EIP, which will increase both the target volume of BLOB objects and maximum limit, will increase inflation,”-said the specialist.
Benzhun Kim from Despread Research noted the migration of users and liquidity in Solana against the background of increasing the number of L2 and the rushing around meme koins.
L2 developers for Ethereum have agreed on the implementation of “base” rolaps
The expert noted that the constant increase in the supply can adversely affect the security of blockchain in the long run, since the parameter and price of the asset are related to each other within the POS.
On February 4, most Ethereum validators supported the increase in gas limit – a maximum that can be used for transactions in one block. The initiative was implemented to increase the scale of the network.
Recall that in September, the Cygaar Web3 researcher called for increased commissions for Blob Objects to restore ETH burning speed.
Later, Ethereum co -founder Vitalik Butherin confirmed the course on the scale of the network through L2.
The gun