Ethereum’s supply is firmly on the decline amid a significant rise in network activity.

The second-largest cryptocurrency by market cap has been a deflationary asset since mid-January, thanks to a recent upgrade known as EIP-1559.

Since the upgrade, each time an ETH transaction is sent, a percentage of the transaction fees is permanently removed from Ethereum’s circulating supply.

This means the more interest, adoption and trading volume the Ethereum network sees, the more scarce the asset can become.

The result so far this year, as tracked by Ultrasound.Money, is that the overall supply of ETH is now in reverse.

In total, 28,730 ETH worth $48,885,818 has burned since the merge, which was 157 days ago.

Another significant Ethereum upgrade, dubbed the Shanghai upgrade, is now on the horizon.

The upgrade is expected to happen next month, and will release $25 billion worth of ETH that has been locked in early staking contracts.

After that, Ethereum developers will focus on new features such as sharding and zero-knowledge proofs.

Sharding will in essence allow the network to perform parallel processing, greatly enhancing the blockchain’s scalability.

Zero-knowledge proofs are designed to enable enhanced privacy by allowing users to authorize transactions without revealing any identifiable information.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: StableDiffusion