The supply of Ether (ETH) has experienced a gradual increase since mid-April, coinciding with the Dencun upgrade, which has decreased competition for block space on the Ethereum mainnet. This Ethereum supply update comes after what many consider the most prolonged period of inflation for ETH since the merger in 2022. The blockchain’s Dencun upgrade, implemented in March, appears to be a significant factor contributing to this inflation.
Since the introduction of the Dencun upgrade on March 13, there has been a sizeable inflation in the Ether supply, according to data from the Ethereum dashboard ultrasound. Money, over 112,000 ETH have been added to the overall supply since April 14. This increase is largely traced back to the upgrade’s implementation of nine Ethereum Improvement Proposals (EIPs), particularly EIP-4844.
EIP-4844, one of the major components of the Dencun upgrade, introduced “blobs” – a mechanism that stores transaction data separately and temporarily. This innovation has led to reduced fees for block data on Ethereum layer-2 networks. Additionally, the Dencun upgrade included proto-dank sharding, enhancing data availability efficiency for block space on the Ethereum mainnet.
The Dencun upgrade has significantly reduced the cost of executing transactions on Ethereum layer-2 networks such as Arbitrum and Optimism. However, this has also led to a decrease in the total amount of ETH burned on the mainnet. Despite the inflationary trend in recent months, the overall Ethereum supply has decreased substantially since the Merge.
Ethereum Supply Update: Post-Merge Statistics
Since Ethereum transitioned to a proof-of-stake consensus mechanism in September 2022, more than 1.5 billion ETH have been burned, while 1.36 billion ETH have been added to the supply. This results in a net supply reduction of 345,000 ETH, equivalent to just over $1.1 billion at current prices.
The Ethereum supply update post-Dencun upgrade reflects a nuanced picture of ETH’s inflationary and deflationary trends. The recent increase in supply marks an inflationary period, but the overall supply has still decreased significantly since the merger. The Dencun upgrade, through mechanisms such as EIP-4844 and proto-danksharding, has played a pivotal role in these developments, influencing transaction costs and the overall supply dynamics of Ether.
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As reported by The BIT Journal, the latest crypto news indicates that investors are closely watching Ethereum’s supply trends. The crypto update reveals that the Dencun upgrade’s impact on Ethereum supply is of significant interest. Cryptocurrency news often highlights such pivotal updates, reflecting on how these changes affect the broader market, including Bitcoin (BTC) and other major cryptocurrencies.
Compared to Bitcoin, which has a fixed supply cap of 21 million BTC, Ethereum’s supply is more dynamic, influenced by various network upgrades and mechanisms. These differences are critical for investors who follow both BTC and ETH closely.
The cryptocurrency update landscape continually evolves, with Ethereum supply changes playing a significant role. Cryptocurrency news often focuses on how these updates affect market behaviour, investor sentiment, and the overall health of the blockchain ecosystem. The Ethereum supply update, influenced by the Dencun upgrade, is a prime example of how technical changes can lead to substantial shifts in the crypto market.
Conclusion
In conclusion, the Ethereum supply update post-Dencun upgrade presents a complex picture of inflationary and deflationary trends. The Dencun upgrade, through mechanisms such as EIP-4844 and proto-danksharding, has played a crucial role in these developments. As the latest crypto news and cryptocurrency updates continue to unfold, the Ethereum community remains attentive to these changes and their implications for the broader cryptocurrency market, including comparisons with Bitcoin and other major digital assets. The BIT Journal will continue providing updates on these and other critical developments in cryptocurrency news.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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