đ„ETHEREUM: You won't believe itđ±
The supply of #Ethereum has reached its lowest levels since 2022. The available amount of ETH has not reached such a low point since the Merge occurred, which meant the end of mining on the network.
Data of interest:
đžSince the Merge, almost half a million ETH were burned.
đžHigh activity in Ethereum is essential to promote ETH burning.
The total amount of #ETH in circulation reached unprecedented levels in a year and a half. With 120,072,585 ETH in supply, the Ethereum cryptocurrency reaches figures similar to those of August 2022, when the Merge occurred that put an end to mining.
Since the Merge to date, 448,459 ETH have left circulation, which implies a 0.25% reduction in the total supply. In the 18 months since that Ethereum milestone, 1.56 million ETH were issued and 1.19 million ETH were burned.
The comparison with the previous model is brutal. If Ethereum continued to operate with the proof-of-work algorithm (PoW, traditional mining), and therefore, with a larger issuance than the current one, the circulation of ETH would have increased by 5 million in the same period of time.
đčHow did Ethereum reduce the circulation of its cryptocurrency to such an extent?
- First, the issuance per block was reduced by moving to the proof-of-stake (PoS) algorithm.
- Through improvement proposal EIP-1559, a commission burning procedure was introduced.
So the more fees paid to use block space on Ethereum, the more ETH will be burned. In other words, the more network usage, the more ETH burning. In this way, Ethereum developers seek to make the cryptocurrency deflationary and, consequently, a more valuable asset for the future.
Summary: The deflationary system that Ethereum has and the large ecosystem that it has of projects in its #Blockchain makes it one of the most interesting #Criptomonedas to hold in the long term. The only problem is the fees.
Any other more interesting ones?
Source: CriptoNoticias
