Ethereum Supply Grows by 15,637 ETH in 7 Days as Staking Continues to Rise

Data from Ultra Sound Money has revealed that Ethereum’s supply increased by 15,637.76 ETH over the past week. 

This shift follows a noticeable trend in the Ethereum ecosystem, where supply dynamics have fluctuated based on the balance between issuance and burn mechanisms. Despite the implementation of Ethereum Improvement Proposal (EIP) 1559 in June 2021, which aimed to curb inflation through token burns, the past seven days have seen more ETH minted than burned. As of now, the total supply stands at 120,333,951 ETH, showing a modest annualized increase of +0.678%.

Supply Changes Driven by Issuance and Burns

Ethereum’s issuance and burn rates are crucial factors driving its supply. Over the 7-day period, a total of 18,263.28 ETH was issued, while only 2,625.52 ETH were burned. Burns served as a mechanism to permanently reduce the total supply by removing ETH from circulation with every transaction. However, during this specific timeframe, burns lagged behind issuance, leading to a net increase in Ethereum’s overall supply.

The balance between issuance and burning plays a central role in determining whether Ethereum’s supply will expand or contract. Notably, when more ETH is issued than burned, as seen in this period, the result is an inflationary effect, adding more coins to circulation. This uptick in supply reflects an ongoing trend where Ethereum’s supply is influenced by network activity and market demand.

Staking Strengthens Amid Supply Growth

While Ethereum’s supply has increased, staking activity on the network continues to grow steadily. Over the past seven days, the total amount of staked ETH saw a +0.24% rise. This increase in staked ETH represents growing confidence in Ethereum’s long-term potential as more holders lock their assets in staking contracts. Over the past 30 days, staked ETH has climbed by +1.13%, with an even more significant rise of +4.48% over the last 90 days.

This consistent growth in staking indicates that many Ethereum holders are committed to the network’s future, reducing the circulating supply of ETH in the process. Although this week’s net issuance was positive, the growing volume of staked ETH contributes to lowering the supply available for everyday transactions.

Ethereum’s Supply Trends in 2024

The recent data points to broader trends in Ethereum’s supply throughout 2024. CoinGecko previously noted that from the start of the year until August, Ethereum emitted 540,958 ETH, while only 465,657 ETH were burned. This marked a net supply increase of 75,301 ETH since the beginning of 2024, highlighting Ethereum’s shift from a deflationary period in late 2022 to an inflationary phase during this year.

Ethereum’s deflationary characteristics were more evident between the fourth quarter of 2022 and the first quarter of 2024, where higher burn rates reduced the overall supply. However, reduced network activity in the second quarter of 2024 shifted the balance, resulting in an increase in total circulating supply.