The world of cryptocurrency has been buzzing over the past two years with the evolution of Ethereum’s ether, the second-largest cryptocurrency by market capitalization. The supply of ether has seen a decrease of around 0.02% since the platform’s merge with the Beacon Chain, a move which ushered in the Proof-of-Stake consensus algorithm.
This shift contrasts starkly with the flagship cryptocurrency, bitcoin, which, according to Nick Tomaino, founder of 1confirmation, has seen its supply increase by 1.83% per annum over the same period, to a total of 19.8 million BTC. Tomaino is of the view that while it is reassuring to know that bitcoin’s supply is capped at 21 million, set to be fully mined by 2140, a deflationary model based on usage is even more advantageous.
In his view, when it comes to the principles of robust monetary policy, Ethereum’s ether is unrivalled. This perspective comes in the wake of Ethereum’s implementation of the Ethereum Improvement Proposal (EIP) 1559, as part of the London hard fork in August 2021. This proposal sees every ether transaction including a base fee that is automatically burned.
Ultrasound Money, a platform that tracks Ethereum’s supply changes, reveals that since the platform’s merge with the Beacon Chain, a whopping 53,514.62 ETH (roughly $175.9 million worth of the digital asset) has been burned. The current ether supply stands at approximately 120.4 million ETH, with the network’s supply decreasing by 0.02% per year since the merge.
Over the last 30 days, the growth of the supply is calculated at 0.31% per annum, with 947,000 ETH issued per year. Annualized burns equate to 575,000 ETH, as shown by data from the platform.
In related news, BlackRock, the world’s largest asset manager, launched a spot ether exchange-traded fund (ETF) earlier this year, which has since accumulated an impressive cache of ETH. Recent data from the Ethereum blockchain and BlackRock’s website, identified by Arkham Intelligence, reveal that the iShares Ethereum Trust ETF (ETHA) now holds 1.065 million ETH. With the current market value, this equates to over $3.5 billion, following significant inflows over recent weeks, as per CoinGlass data.
As Ethereum continues to innovate and adapt, the cryptocurrency sector watches with bated breath. The evolution of Ethereum’s ether is a testament to the dynamic and ever-evolving nature of digital currencies, with the future holding immense potential for further growth and change.
