The net supply of Ethereum has gone up by 16,975 in the last 7 days. This contributed to a rise in total supply of approximately 18,099 ETH. The annual supply growth rate now stands at 0.736% after accommodating the destruction of 1,124 Ethereum tokens. This is one of the factors that has contributed to the surge in token value. At press time, Ether’s value has increased by 3.64% in the past 24 hours and stands at $2,558.
Previous reports indicated that the supply of Ethereum surpassed 120 million due to growth in staking and restaking. The decentralized open-source blockchain platform has, therefore, instilled a sense of confidence in the proof-of-stake consensus mechanism. This specific development dates back to the middle of August this year, 2024, and marked a pivotal moment in strengthening network security and rewards.
However, it demonstrates the Ethereum network’s efficiency in terms of supply and staking mechanisms. The latter occurs despite fluctuations in the crypto market. The issuance of 77,091 tokens, which began floating in the last 30 days to the middle of this month, resulted in a jump to 120.8 million Ether.
The supply growth outperformed the burn rate when 19,438 tokens were incinerated via a burning mechanism. At that time, the net supply was 57,653, representing an annual growth of 0.58%.
The Ethereum burning mechanism had positioned the network in a deflationary pattern. It is back to the inflationary trajectory, with issuance outpacing the burning of the crypto token. This advantageous shift is attributed to the shift to PoS from PoW. There has been a notable increase in network security strength, as well as participation rewards. Estimates indicate that users have staked almost 33.9 million Ether tokens, accumulating rewards exceeding half a trillion dollars.
Ethereum tokens are currently at the top as an altcoin. Their near-term projections are bullish, irrespective of the pace. In the next five days, it is likely to exchange hands slightly above $2,600. That would be a 4.54% increase from the current value, despite volatility of 8.52% and a 14-day RSI of 39.95.
At the start of August, the net supply of Ethereum was 120.25 million.
There is reportedly a slowdown in Ethereum transactions. They are down by 55%, with many believing that institutional investors are distancing themselves from the second-ranked cryptocurrency.
It could also demonstrate a willingness to hold on to the token ahead of a speculated rebound. Investors are simultaneously waiting to fuel liquidity, which largely depends on when the Federal Reserve announces rate cuts. If anything, some investors might wish to capitalize on the current market decline. The number of transactions recorded last Sunday was 1.07 million, the lowest in the last few months.
Source: https://www.cryptonewsz.com/ethereum-supply-rise-by-16975-eth/