On March 13, Ethereum, the second-largest cryptocurrencycurrency, adopted Dencun, a recent upgrade that led in a significant reduction in the amount of ether in circulation.
According to CryptoQuant data, which CNBC published, the overall supply of ether has reached its lowest point since mid-week in August 2022. This fall coincides with Ethereum’s important transition from proof-of-work to proof-of-stake with the Merge update.
With a 0.872% yearly decrease over the last month and a 0.246% annual decline since The Merge, the rate of ether supply depletion is now the fastest since May 2023. According to Julio Moreno, head of research at CryptoQuant, more activity on Ethereum is resulting in higher transaction fees.
Less than 1.12 million ether have been issued since The Merge, resulting in a net reduction of more over 446,000 ether worth nearly $1.62 billion. Over 1.56 million ether has been burned.
Ethereum’s on-chain metrics are strong, even though Solana’s network activity is gaining traction. With 1.26 million transactions recently reported, the network’s seven-day moving average is approaching its 12-month high.
On Ethereum, both new and active addresses have reached 12-month and year-to-date highs, with total on-chain volume reaching $7 billion. The Dencun update from Ethereum, which significantly reduced the quantity of ether in circulation, demonstrates how resilient the network is in the face of increased prices and transaction traffic.
