Reduction Rate of Ethereum Supply at the Summit of 2023

According to over-chain data, the decrease in Ethereum supply reached the highest level of 2023. According to the On-Chain Metric compiled by market follower Glassnode, ETH burning rate reached 1.42%. This figure was the highest deflation figure after the instant 17 % recorded in May 2022.

In 2022, ETH had an inflationary structure. However, with the MERGE update, ETH supply increase rate fell to zero. Most of the crypto currency experts predict that there will be rising in the long run with the decline of the Ethereum supply. According to the laws of economic, the supply of a product decreases and if the demand remains constant, the price increase occurs.

Two different fees are charged from a transfer on the Ethereum network. The Blockchian network first demands a base fee from each transfer. In addition, those who want to perform the transaction faster pay more additional fees. If the network fees exceed the rate of increase in Ethereum, ETH supply is stretched.

Bitcoin’s biggest rival Ethereum has lost 4 %since the beginning of the week. Ethereum has not been permanent over $ 1,683 since the second half of February, and it fell to $ 1.560 after the sale in the last hours.