‼️Ethereum supply has returned to pre-The Merge levels.
Ethereum supply has increased to 120,521,725 ETH. The last time comparable levels were seen was in September 2022, before The Merge update.
The metric exceeded the pre-PoS and PoW “merger” levels by 584 ETH.
In the two years and 144 days since the update, coin issuance amounted to 1,948,221 ETH, and 1,947,636 ETH were withdrawn from circulation.
After The Merge, Ethereum supply reached a low in April 2024 at 120,064,500 ETH, after which the trend reversed.
Presto Research’s Jaehyun Ha reminded The Block that inflation began to rise again a month after the Dencun hard fork.
The current dynamics of ETH supply cast a shadow over the narrative of Ethereum as a deflationary asset that is a better store of value than Bitcoin.
Before Dencun, users paid fees in the form of gas price multiplied by gas quantity. A significant portion of the fees were removed through burning.
According to an expert, the change led to a decrease in the percentage of fees burned, as a significant portion of on-chain data moved to BLOBs.
