{"id":20928,"date":"2025-02-05T15:03:39","date_gmt":"2025-02-05T13:03:39","guid":{"rendered":"https:\/\/forklog.com\/en\/ethereum-supply-returns-to-pre-merge-levels\/"},"modified":"2025-02-05T15:03:39","modified_gmt":"2025-02-05T13:03:39","slug":"ethereum-supply-returns-to-pre-merge-levels","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ethereum-supply-returns-to-pre-merge-levels\/","title":{"rendered":"Ethereum Supply Returns to Pre-Merge Levels"},"content":{"rendered":"

The supply of Ethereum has risen to 120,521,725 ETH, a level last seen in September 2022 before the Merge update.<\/p>\n

\"1-1424\"<\/a>
Data: Ultra Sound Money<\/a>.<\/figcaption><\/figure>\n

The metric has surpassed pre-Merge PoS and PoW levels by 584 ETH.<\/p>\n

In the two years and 144 days since the update, 1,948,221 ETH have been issued, while 1,947,636 ETH have been removed from circulation.<\/p>\n

Following the Merge, Ethereum’s supply hit a low in April 2024 at 120,064,500 ETH, after which the trend reversed.<\/p>\n

Jaehyun Ha from Presto Research reminded The Block<\/a> that inflation began to rise again a month after the Dencun<\/a> hard fork.<\/p>\n

The current dynamics of ETH supply cast doubt on the narrative of Ethereum as a deflationary asset, which is considered a better store of value than Bitcoin.<\/p>\n

Before Dencun, users paid fees as the price of gas multiplied by its quantity, with a significant portion of fees being burned.<\/p>\n

\n

\u201cWith Dencun, Ethereum added support for BLOB<\/span> transactions for L2. These use a separate unit of \u2018<\/em>blob gas\u2019<\/em>, which differs from the standard \u2018<\/em>gas\u2019<\/em> applied to regular operations,\u201d<\/em> explained Ha.<\/p>\n<\/blockquote>\n

According to the expert, the change led to a decrease in the share of burned fees, as a significant portion of on-chain data moved to BLOB objects.<\/p>\n

\n

\u201cAs a result, even if overall network activity remains high or increases, the balancing effect that previously limited net ETH issuance is now less pronounced,\u201d<\/em> he added.<\/p>\n<\/blockquote>\n

Ha emphasized that the current situation is not a cause for concern, as Ethereum has not yet seen a decline in transaction numbers despite the sharp increase in asset supply.<\/p>\n

\n

\u201c<\/em>The upcoming March<\/em><\/a> hard fork <\/em>Pectra<\/em><\/a> with an EIP that will increase both the target volume of BLOB objects and the maximum limit will boost inflation,\u201d<\/em> the specialist predicted.<\/p>\n<\/blockquote>\n

Benjun Kim from DeSpread Research noted the migration of users and liquidity to Solana amid the rise of L2 and the hype around meme coins<\/a>.<\/p>\n

The expert noted that the continuous growth of supply could negatively impact blockchain security in the long term, as the parameter and asset price are interconnected within PoS.<\/p>\n

On February 4, the majority of Ethereum validators supported raising the gas limit\u2014the maximum that can be used for transactions in a single block. The initiative was implemented to enhance network scalability.<\/p>\n

In September, Web3 researcher Cygaar called for<\/a> an increase in fees for BLOB objects to restore the ETH burn rate.<\/p>\n

Later, Ethereum co-founder Vitalik Buterin confirmed the course<\/a> towards scaling the network through L2.<\/p>\n","protected":false},"excerpt":{"rendered":"

The supply of Ethereum has risen to 120,521,725 ETH, a level last seen in September 2022 before the Merge update. Data: Ultra Sound Money. The metric has surpassed pre-Merge PoS and PoW levels by 584 ETH. In the two years and 144 days since the update, 1,948,221 ETH have been issued, while 1,947,636 ETH have […]<\/p>\n","protected":false},"author":1,"featured_media":20927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,1138,1617,1134,1258],"class_list":["post-20928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-opinions","tag-pectra","tag-technical-updates","tag-tokenomics"],"aioseo_notices":[],"amp_enabled":true,"views":"34","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=20928"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/20927"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=20928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=20928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=20928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}