IntoTheBlock Reports Ethereum Supply Reduced By 66,000 ETH
- Ethereum’s supply was decreased by 66,000 ETH due to the change to PoS consensus, according to IntoTheBlock.
- Deflationary currency reduces supply, increases purchasing power, and attracts cryptocurrency fans.
- Shanghai-Capella upgrade on April 12th to add validator staking withdrawals. ETH value up 26%.
IntoTheBlock, a market intelligence platform, has reported that the world of cryptocurrency has experienced a major shift. In 2023, the supply of Ethereum was cut by 66,000 ETH, representing a historic development.
In 2023, the supply of Ethereum decreased by 66k $ETH due to the burning of a fraction of transaction fees. This move has made Ethereum deflationary, which is good news for cryptocurrency fans seeking scarce digital assets. #Ethereum #deflation pic.twitter.com/2RuwiioffW
— IntoTheBlock (@intotheblock) March 18, 2023
This can be attributed to Ethereum’s shift to proof-of-stake (PoS) consensus, known as the ‘Merge,’ which happened in September 2022. As a result of the implementation of the new consensus mechanism, a part of ETH transaction fees is now being burned, leading to Ethereum becoming a deflationary currency.
A deflationary currency is characterized by a decrease in the supply of currency over time, resulting in an increase in its purchasing power. Conversely, an inflationary currency sees an increase in the supply of currency over time, leading to a decrease in its purchasing power.
In addition, deflationary currencies are particularly appealing as they are seen as scarce digital assets. This scarcity is perceived as a driver of an asset’s value, making it a desirable investment opportunity for crypto fans.
It is important to note that another highly anticipated upgrade for Ethereum, the Shanghai-Capella upgrade, also referred to as the Shapella upgrade, is scheduled to launch on April 12, 2023.
One of the major components of this upgrade is Ethereum Improvement Proposal (EIP) 4895, which will introduce validator staking withdrawals to the main network. This feature was not included during Ethereum’s transition to proof-of-stake (PoS) consensus in September 2022, following the Merge upgrade.
Currently, the price of ETH is around $1,816.52 per coin. In the last seven days, the asset’s value has experienced significant growth, increasing by 26%.
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