Ethereum’s Proof-of-Stake Yields to Deflationary Consequences
The Ethereum network is deflationary these days, according to data presented by analytics website Ultrasound.Money. Following the implementation of the London hard fork of EIP-1559, metrics show that over 1.023 million Ether are removed from operation every year. Since the transition from Proof of Work to Proof-of-Stake (PoS), it is known as The Merge, while its current annual issuance rate is negative 0.057% or -29,797 Ether. According to the data, more Ethereum is currently being withdrawn from operation than is being issued and the issuance rate would increase by about 3.49% annually if Ethereum was still using Group of Work. As of 10:30 AM (ET) on February 20, 2023, according to the data, 1,823,678 Ethereum tokens will be added to the coins operated under Proof of Work. As of 10:55 a.m. (ET) the same day, approximately 120,491,331 Ethereum tokens are in circulation and at the same time, 16,763,815 ether are locked in the Beacon chain contract. Those coins will be released from their locked state when the March Shanghai update occurs. is done. Locked ether represents $28.61 billion, or 13.91% of the circulating supply and market value, of the second largest cryptocurrency with a market cap of $205.77 billion. According to ultrasound.Money data, Ethereum currently has an annual issuance reward of 4.1%, and a burn rate of 1.8% per year for non-stakers.