BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Ethereum

A Week after Ethereum Merge, ETH Supply Drops from 200k to 5k

by Abimbola Adu
Sep 23, 2022 - 12:00 am
in Ethereum
A Week after Ethereum Merge

Following the recent Merge update, its impact on the Ethereum platform has been noticed by both crypto enthusiasts and token holders. However, the most noticeable aspect has been the massively decreased issuance. On September 23, SassalOx, an independent Ethereum educator, tweeted that Ethereum supply had dropped from 200k to 5k.

It's been a little over a week since The Merge 🐼

If Ethereum was still PoW, the supply of ETH would've gone up by ~100,000

Instead, the supply of ETH has only gone by up ~5,000

This is a 95% reduction in net ETH issuance (includes the burn which is very small right now)

— sassal.eth 🦇🔊 (@sassal0x) September 23, 2022

The platform’s issuance of new ETH, each block, has been significantly lowered since Ethereum switched to PoS. While it is not yet deflationary, it’s possible that a burning mechanism added with the platform update, EIP-1559, would eventually cause Ethereum to become deflationary, meaning that its token supply will definitely decline.

However, after the ‘merge’ update was incorporated into the Ethereum platform, finally moving the platform from the energy-demanding PoW to the energy-efficient PoS, the price of ETH has fallen. Following the integration, Ethereum miners who are PoW-friendly sold their ETH and had to leave the platform, some moving to Ethereum Classic.

In addition, increased hike rates are generally not received well by investors. In an attempt to curb inflation, the Fed hikes rates, which in turn helps strengthen the dollar. Ultimately, strengthening the US currency results in more liquidity leaving the market. Valuation plummets as crypto investors tighten their spending in response to less liquidity.

Ever since the merge, ETH’s valuation has notably plummeted. However, lower issuance has been hailed as a factor for ETH holders to maintain optimism: since there are fewer ETH in use, each token should potentially be worth more.

SassalOx further stated that most of that PoW issuance was probably dumped by miners since they had to cover operating costs. Now, on the Ethereum network, with the operating costs significantly lower than PoW, most PoS issuances after taxes will be held or restaked.

Tags: ETHEthereumMerge
Abimbola Adu

Abimbola Adu

Abimbola Adu is a crypto content writer with a background in English studies. She is keen on enlightening others about cryptocurrency and blockchains. She enjoys writing poems and spending time with family.

Related Posts

Promotional image for VanEck's "Enter the Ether" Ethereum futures ETF campaign.

VanEck Ramps Up Marketing for Ethereum Futures ETF: Launch Imminent?

September 29, 2023

VanEck intensifies marketing efforts for its anticipated Ethereum futures ETF, with industry insiders hinting at a potential imminent...

Ethereum coin symbol with the American flag backdrop, indicating the U.S. crypto market's development.

U.S. Set to Welcome Ether Futures ETFs Amid Government Shutdown Fears

September 28, 2023

Ether futures ETFs might soon debut in the U.S. An impending government shutdown might hasten their launch, with...

Ethereum co-founder, Vitalik Buterin, reviewing his wallet transactions.

Vitalik Buterin’s Wallet Moves 400 ETH to Coinbase Amidst Multiple Transactions

September 25, 2023

Vitalik Buterin's recent Ethereum transactions spark intrigue as he moves 400 ETH to Coinbase and over $3.9M across...

A technician meticulously assembles an Ethereum mining rig, a crucial tool in cryptocurrency mining.

Unveiling the Mysteries of the Ethereum Mining Rig: Your Comprehensive Guide

September 17, 2023

Delve deep into the world of cryptocurrency with our comprehensive guide on setting up your very own Ethereum...

Press Releases

David Ferrucci next to the Elemental Cognition brand emblem.

BM Watson’s Lead Developer Secures $60M for New AI Venture, Elemental Cognition

August 18, 2023

David Ferrucci, has raised a remarkable $60M for his AI startup. The company brings forward two pioneering chatbot solutions designed...

pulse5

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse4

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse3

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise