Token Burn on Ethereum Blockchain Accelerates
While the crypto markets have seen a rapid return this week, the demand for Ethereum continues to increase in the same direction. However, one of the important events supporting the Ethereum price is the rapid decline of the circulating supply in the post-Merge period. According to the latest data, deflation continues to increase as token burning in the Ethereum network accelerates.
Ethereum saw a significant reduction in circulating supply after moving from a proof-of-work model to a proof-of-stake model with the Merge update. According to the latest situation, its circulating supply decreased by approximately 63,000 ETH in the post-Merge period. Accordingly, the current supply is estimated at an average of 120.45 million ETH.
According to analysts evaluating the data, if the burning process continues at this rate, the amount of ETH in circulation until 2025 may decline to 118 million with an annual decrease of 1.18%. It is reported that the majority of ETH burning transactions are carried out by decentralized finance (DeFi) protocols serving on the network. Tether, Uniswap and Blur are the platforms that make the highest contribution to the burning activity regarding ETH transfers.
On the other hand, after the Ethereum network switched to the proof-of-stake consensus mechanism, it became unrivaled in staking service as the largest smart contract platform in the market. Especially after the Shanghai update, the staked assets on the Ethereum network will be unlocked, which will ensure that the platform is liquid in terms of staking. Some experts believe that after the update, a new era will begin in the staking industry. The Shanghai update, which has a very important place for the Ethereum network, was planned to be carried out this month. However, the developers recently announced that the update has been postponed to April.
Leave a ReplyWant to join the discussion?
Feel free to contribute!