The Merge marked the transition of the Ethereum network from proof-of-work to proof-of-stake and resulted in the removal of 103,092 ETH from circulation after 218 days. This equates to approximately $197 million at current prices, with deflation on the network increasing due to a 0.146% annual supply decline.
- Ultrasound.money reports that the current supply of Ether is nearly 120,416,113 million coins.
- The currency burn rate for the last 30 days is 1,125k ETH, resulting in a supply growth of -0.37%.
- The Ethereum supply is expected to reach 118.1 million by 2025 at this pace.
- Stakers receive 3.9% issuance rewards per year, while non-stakers see a burn rate of 1.8% per year.
- If Ethereum had continued to rely on miners instead of undergoing the Merge, the token supply would have increased by 2.5 million ETH, or approximately $4.9 billion in current market value. This would have resulted in a 3.53% annual increase in ETH supply.
- The Merge contributed to the reduction in ETH supply, but the aspect of burning Ether can be attributed to the implementation of Ethereum Improvement Proposal 1559 through the London upgrade in August 2021. Its purpose is to decrease inflation on the Ethereum network and apply deflationary pressure on the token’s supply.
- The Shapella upgrade on April 12 allowed stakers to unlock their staked Ether, leading to a slowdown in the exodus of tokens following the event. Within a week, the amount of staked Ether surpassed the number of ETH being withdrawn for the first time.