An analysis of Ethereum’s financial information has shown that an astronomical $2.5 billion worth of ETH has been burned since the Merge Event in September of 2022. Indeed, Ultrasound Money shows that the supply of Ethereum is at an 18-month low, currently standing at 309,663 ETH.
The development shows a clear contrast to the inflation that Ethereum had previously observed. Indeed, the asset has now shown a deflationary shift due to the 1,195,238 ETH that has been burned. Moreover, that permanent reduction in supply will have a long-term positive impact on the asset’s value.
Ethereum Supply Drops by 1 Million ETH Since Merge
Throughout the entire history of the digital asset sector, Bitcoin has reigned supreme. However, the rising prominence of Ethereum has caused it to be the only true competitor within the space. Moreover, the landmark merge event had been a massive moment in the increased prominence of the asset. Now, the fruits of that development are starting to take shape.
Specifically, recent observation has shown that Ethereum is $2.5 billion worth of ETH burned since that merge event in 2022. Altogether, the event has caused a net decrease in overall supply. That decrease has still been present despite the issuance of $1.86 billion worth of the digital asset.
Currently, Ethereum’s total supply is at its lowest point since that Merge event, with 120,211,380 ETH. Moreover, that supply equates to a market cap for the asset that is still north of $266 billion. Subsequently, it further reiterates the place Ethereum holds in the greater digital asset market.
The effects of that very Merge event are already being felt, but still have longstanding positives to be uncovered down the line. The decrease in supply will have a massive impact on the token’s scarcity. Therefore, it will only grow in value overtime, and potentially ascend to previuoly unkown heights.