- ETH’s supply has dropped to its lowest level since the merge.
- A key indicator has shown the re-emergence of the bears in the ETH spot market.
Ethereum’s [ETH] supply has fallen to its lowest since the blockchain transitioned from the proof-of-work consensus mechanism (PoW) to a proof-of-stake (PoS) network in an event popularly referred to as “The Merge.”
Although the week has witnessed an elevated cost of sending and receiving ETH, the network has also burned a significant amount of the cryptocurrency, leading to a shrinking overall supply.
According to data from Ultrasound.money, 31,829.06 ETH worth around $71.58 million have been burned in the last week. Within the same period, newly issued coins totaled 16,535 ETH.
AMBCrypto found that since the merge, 320,870.92 ETH worth $721.68 million at the coin’s current price has been removed from circulation. At press time, the leading altcoin’s supply was 120.2 million ETH.
Profit-takers control the market
At press time, the network’s native coin traded at $2,249. Sharing a statistically significant correlation with Bitcoin [BTC], whose value has fallen by 5% in the last week, ETH’s value has dipped by 6% within that period.
As profit-taking activity intensifies, there has been a steady decline in ETH accumulation. An on-chain assessment of the coin’s network activity on a seven-day simple moving average revealed a drop in demand for the altcoin.
Data from Santiment showed th
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Author: Abiodun Oladokun
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