According to The Block, while various Ethereum chains are approaching or reaching 12-month highs, the total supply of Ether (ETH) has dropped to the lowest level since August 2022, and the current decline rate is the fastest since May 2023.
Data from CryptoQuant quoted by CNBC shows that as of last week, the total supply of Ether has dropped to the lowest level since August 2022, when Ethereum was preparing for the major “merge” upgrade from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism.
Furthermore, according to data from ultrasound.money, the supply of Ether has been decreasing at an annual rate of 0.872% in the past 30 days, which is the fastest decline rate since May 2023. In comparison, the supply of Ethereum has been decreasing at a rate of 0.246% since the merge.
Julio Moreno, the head of research at CryptoQuant, stated in a report last week that the high activity on the Ethereum network has led to high transaction fees, resulting in more fees being burned. In terms of actual numbers, over 1.56 million ETH has been burned since the merge upgrade, while less than 1.12 million ETH has been issued, resulting in a net decrease of over 446,000 ETH, valued at nearly $1.62 billion at the current price.
According to data from The Block, Ethereum’s on-chain metrics are performing strongly. The seven-day moving average of Ethereum network transactions is close to the 12-month high set in January. On March 16th, the second-largest blockchain by market capitalization processed 1.26 million transactions.
Additionally, the number of active addresses on Ethereum reached a new 12-month high of approximately 540,000 on March 16th. At the same time, the seven-day moving average of new Ethereum addresses also reached a 12-month high, surpassing 120,000 addresses.
The data also shows that Ethereum’s on-chain transaction volume has surged to a new 12-month high, with over $7 billion recorded on March 16th.
