Since The Merge, Ethereum has seen a decrease in ether supply by over 100,000 coins as the blockchain moves towards a more eco-friendly consensus mechanism.
According to ultrasound.money, the total supply of ether has declined by 103,092 coins worth over $200 million in the last 217 days.
If Ethereum had remained secured by miners instead of stakers, the ether supply would have increased by over 2.52 million coins, or $4.9 billion, and would have also increased yearly by 3.53%.
However, post-Merge Ethereum’s coin supply has reduced by 0.144% per year, with $1.2 billion being removed from the ether supply in the same period.
Ethereum Improvement Proposal 1559 (EIP-1559) was responsible for the burning of ether and exerted deflationary pressure on the ether supply since the base fee gets burned and can no longer be used on the network.
Although it has not decreased the blockchain’s total supply, it has reduced the inflation on the Ethereum network. The activity of burning ether has increased since the Shapella upgrade, which allowed staked ether withdrawals just over one week ago.
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