Annual ETH burn rate on the eve of the Shapella hard fork reaches $5.5 billion

The annual burn rate of Ethereum, calculated on a yearly basis, reached 1,827,000 ETH (~$5.5 billion), a supply reduction of 1.06%. Data, ahead of the planned 12 April Shapella hard fork, comes from ultrasound.money.

In the absence The Merge over the last 208 days, supply growth would have amounted to 2.34 million ETH (~$4.48 billion). Thanks to the transition to the consensus algorithm Proof-of-Stake of the Ethereum network, it has moved into a deflationary regime — the figure fell by 82,941 ETH ($158.7 million).

Since the implementation of EIP-1559 within the London hard fork, the cumulative supply of coins over the last 614 days has grown by 3.23 million ETH ($6.2 billion). Without the The Merge factor, issuance in this period would have reached 5.66 million ETH ($10.85 billion).

The current annual yield for validators stands at 3.9%.

Shapella (Shanghai-Capella) includes changes to the consensus and execution layers of Ethereum. Its main objective is to open access to withdrawing ETH from staking.

Within 24 hours of the upgrade’s activation, Coinbase will begin accepting requests to withdraw ETH from staking. Company representatives noted that full processing could take from weeks to months.

The team behind the liquidity staking platform ликвидного стейкинга Lido Finance warned that it will open redemption of stETH for the “original” cryptocurrency in mid-May.

As noted by Glassnode, growth in Ethereum staking deposits has slowed. They attribute the reasons to the upcoming hard fork Shapella and regulatory pressure.