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