Since implementing proof-of-stake, the number of native Ethereum currencies has decreased by 100,000.
Since The Merge shifted Ethereum from an energy-intensive proof-of-work consensus mechanism to an environmentally favorable proof-of-stake method, the ether supply has decreased by over 100,000 units.
According to the Ethereum monitoring website ultrasound.money, the total supply of ether has decreased by 103,092 coins, or more than $200 million at current prices, over the past 217 days.
If The Merge had never occurred and Ethereum had continued to be secured by miners rather than stakers, the ether supply would have increased by over 2.52 million coins, or $4.9 billion. Additionally, the supply of Ethereum’s native currencies would have increased annually by 3.53 percent.
Instead, the post-Merge annual decline in Ethereum’s coin supply is 0.144%. Additionally, ultrasound.money asserts that $1.2 billion is being extracted from the ether supply during the same time period.
The Merge has unquestionably accelerated the reduction of Ethereum’s native-coin supply, but it did not initiate the destruction of ether. This tokenomic feature was instead activated by Ethereum Improvement Proposal 1559, or EIP-1559, which was released via the London upgrade.
EIP-1559 was also intended to exert deflationary pressure on the ether supply, as the incinerated base charge cannot be used on the network, thereby reducing the amount of inflation on the Ethereum network. However, it has not decreased the total supply of the blockchain. Since the launch of London, the total ether supply has increased by 3.21 million coins.
Since Ethereum’s Shapella enhancement enabled staked ether withdrawals one week ago, there has been an increase in ether burning.
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