Ethereum turns deflationary amid weekend market rally Ethereum turns deflationary amid weekend market rally
Ethereum (ETH) issuance turned deflationary over the weekend amid a market-wide rally that saw it trade near pre-FTX collapse levels.
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Updated: Jan. 16, 2023 at 8:57 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Ethereum (ETH) issuance turned deflationary over the weekend amid a market-wide rally.
ETH supply growth is roughly -0.10% per year — 622,000 ETH issued yearly and 739,000 ETH burnt yearly — according to Ultrasound.money data.
In a simulation where ETH continued to utilize the Proof-of-Work (PoW) mechanism, supply would be up a further 1.45 million ETH — an increase of roughly 4% to the network — according to Ultrasound.money’s ‘Simulate PoW’ function.
However, the merge event — and switch to Proof-of-Stake mechanism — has removed 32 ETH from the asset’s total supply, switching ETH back to deflationary.
ETH nears $1600
Ethereum is trading near $1600 for the first time since FTX collapsed in November 2022, according to CryptoSlate data.
ETH broke the $1500 barrier on Jan. 14 and has continued to trade above the threshold since then. In the early hours of Jan. 16, ETH traded for as high as $1579 before retracing to its current $1,567.
In the last 30 days, ETH has outperformed Bitcoin’s price performance — gaining 34.2% — while BTC rose by 27% over the same period, according to CryptoSlate data..
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