Ethereum’s Circulating Supply Hits Post-Merge Low as 18,109 ETH Burned in 30 Days
The decrease in circulating supply is credited to an increase in network demand and utilization, leading to a higher burn rate and the permanent removal of more ETH coins from circulation.
Ethereum’s circulating supply has reached a new low as 18,109 ETH, valued at approximately $53.17 million, were removed from circulation in the last 30 days. According to Ultrasound.money, this reduction brings the circulating supply to a total of 120 million ETH, marking the lowest level since the network transitioned to a Proof-of-Stake (PoS) consensus mechanism during “The Merge.”
The decrease in circulating supply can be attributed to the growing demand and utilization of the Ethereum network, resulting in a higher burn rate and the permanent removal of ETH coins from circulation. This trend is often associated with a surge in transaction fees, which have reportedly increased by 100% since February 17, as reported by Messari.
Furthermore, Ethereum is experiencing a surge in network activity, particularly in the non-fungible tokens (NFTs) and decentralized finance (DeFi) sectors. NFT sales volume on the Ethereum network has reached a staggering $395 million this month, making it the highest monthly NFT sales volume since April 2023. Data shows that 619,000 NFT sales transactions were completed by 91,000 unique sellers and 108,000 unique buyers over the past 21 days.
In addition, the total value locked (TVL) in Ethereum’s DeFi sector has reached $46 billion, indicating a significant growth of 45% in the last month. This growth has been propelled by the outstanding performance of liquid staking platform Lido Finance, which has recorded a 39% increase in TVL.
Ethereum’s decentralized exchange (DEX) trade volumes have also witnessed substantial growth, with a remarkable 118% increase in the total volume of daily transactions executed on DEXes since February 17. This surge in activity further highlights the escalating demand and heightened activity within the Ethereum network’s ecosystem.
Overall, Ethereum’s circulating supply hitting a post-Merge low, combined with the surge in NFT sales, DeFi sector growth, and increased DEX trade volumes, all point to a thriving and dynamic Ethereum network that continues to attract users and gain prominence in the crypto space.
Analyst comment
Positive news. The decrease in circulating supply indicates increasing network demand and utilization. This trend, along with the surge in NFT sales, DeFi sector growth, and increased DEX trade volumes, suggests a thriving and dynamic Ethereum network. Market sentiment is likely to be bullish.
