CryptoMediaClub
Monday, October 27, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Analysis

Proof of Stake cut $21 billion ETH from circulation as deflation falls to 1.4%

08.03.2024
A A
0
130
VIEWS
ShareShare

The Ethereum network has seen a reduction of 417,413 ETH in supply since transitioning to a Proof-of-Stake (PoS) consensus mechanism in September 2022, per data from ultrasound.money. In the 540 days since The Merge, 1,509,991 ETH has been burned while the network has issued 1,092,578 new ETH, resulting in a net decrease.

As of press time, the market value of the ETH removed from the supply stands at $1,653,797,635, marking an annual inflation rate of -0.23%.

Ethereum issuance since The Merge (Source: ultrasound.money)
Ethereum issuance since The Merge (Source: ultrasound.money)

In contrast, Bitcoin’s supply has grown by 1.716% over the same period. This highlights the divergent monetary policies of the two largest cryptocurrencies, as Bitcoin maintains a predictable issuance schedule. At the same time, the balance between staking rewards and transaction fee burning now determines Ethereum’s supply change.

A Proof-of-Work (PoW) simulation on the ultrasound.money dashboard shows Ethereum’s supply would have increased by over 5.5 million ETH during the same period had the network not shifted to PoS. Under the PoW model, the simulation indicates 7,031,556 ETH would have been issued with the same 1.5 million ETH burn rate, leading to a net increase of 5,521,564 ETH since The Merge. The value of the ETH issued under this simulation would amount to $21,865,393,440, representing a theoretical inflation rate of 3.26%.

Ethereum issuance PoW simulation since The Merge (Source: ultrasound.money)
Ethereum issuance PoW simulation since The Merge (Source: ultrasound.money)

The stark difference highlights the deflationary impact of Ethereum’s new consensus design compared to its previous mining-based system. The transition to PoS has significantly reduced new ETH issuance, as validators staking ETH now secure the network instead of PoW miners. This shift, combined with the ongoing burn mechanism introduced in EIP-1559, has put downward pressure on Ethereum’s supply growth.

According to the real-time data, Ethereum’s total circulating supply currently stands at 120,103,624 ETH. Meanwhile, the PoW simulation estimates the supply would have reached 125,625,188 ETH if miners were still powering the network under the old model.

The supply reduction since The Merge aligns with the Ethereum community’s vision of making ETH a deflationary asset over time, diverging from Bitcoin’s fixed inflationary schedule. Proponents believe the combination of staking rewards and fee burning will continue to offset new issuance, potentially leading to net negative supply change periods.

Over the past seven days, increasing ETH network fees has facilitated an uptick in deflationary behavior as it rose to -1.435%. Moreover, even under PoW, its inflation rate would have fallen to 1.911% due to the surge in network activity and its correlation with the burn mechanic.

Ethereum 7 day inflation rate (Source: ultrasound.money)
Ethereum 7-day inflation rate (Source: ultrasound.money)

However, critics argue the move to PoS has centralized control of the network in the hands of major staking entities and exchanges. Some warn that the concentration of staked ETH could undermine Ethereum’s decentralization and security guarantees, in contrast to Bitcoin’s more distributed mining network.

As Ethereum continues to evolve under its new PoS regime and Bitcoin maintains its established PoW model, observers will closely watch how their respective supply dynamics and security trade-offs unfold. With Bitcoin’s issuance about to half due to the upcoming halving, its inflation rate will drop to 0.8%, which is within 1% of Ethereum. Bitcoin, however, has a fixed supply and will eventually have an inflation rate of zero. Ethereum’s inflation rate is tied to network activity and the amount burned through network transactions.

Still, the deflationary trend in ETH over the past 540 days offers an early glimpse into the potential future of the two largest cryptocurrencies ahead of the first Bitcoin halving since The Merge. The long-term sustainability and implications for both networks remain to be seen, with Bitcoin currently thriving at a $1.3 trillion market cap and Ethereum next in line at $478 billion.

The post Proof of Stake cut $21 billion ETH from circulation as deflation falls to 1.4% appeared first on CryptoSlate.

Share10Tweet6ShareSharePin2

Related Posts

The 5 unbelievable crypto comeback stories that changed the world forever
Analysis

The 5 unbelievable crypto comeback stories that changed the world forever

25.10.2025
0

Crypto is nothing if not cyclical. Every cycle births icons, wrecks them, and sometimes resurrects them. What was once written...

Read moreDetails
Inflation to set up Bitcoin melt-up as rates to fall to 2.75% by next October

Inflation to set up Bitcoin melt-up as rates to fall to 2.75% by next October

24.10.2025
How retail altcoin traders lost $800 billion betting against Bitcoin

How retail altcoin traders lost $800 billion betting against Bitcoin

24.10.2025
Is Solana ready for institutions? $700M real world assets and no downtime

Is Solana ready for institutions? $700M real world assets and no downtime

24.10.2025
If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

24.10.2025
Load More
Next Post
Philippine Central Banker Unveils Project Agila: A Leap into wCBDC Pilot

Philippine Central Banker Unveils Project Agila: A Leap into wCBDC Pilot

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Bitwise CIO says market is ‘not bullish enough’ amid rising political endorsements

Bitwise CIO says market is ‘not bullish enough’ amid rising political endorsements

1 year ago
Bitcoin Price Surpasses $122,000 Amid Rising Institutional Demand

Bitcoin Price Surpasses $122,000 Amid Rising Institutional Demand

3 months ago

Investment Bank Cowen Closes Crypto Asset Division Following Acquisition: Report

2 years ago
Crypto.com Expands US Offerings with Watchdog Capital Acquisition

Crypto.com Expands US Offerings with Watchdog Capital Acquisition

12 months ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Ledger Faces Backlash Over New Multisig App Fees Despite Technical Upgrade

Your Crypto Isn’t Safe Outside the Blockchain, Vitalik Buterin Warns

Kyrgyzstan Launches Stablecoin on BNB Chain, Eyes National Digital Currency and Crypto Reserve

Ethereum Price Prediction: Key Weekly Bounce Confirms Strength, Eyes Crucial Resistance Breakout

XRP Price Prediction: Outpacing Other Altcoins XRP Closes Week Up 11.4% – Momentum Building?

Coinbase CEO Wants Every Startup to Launch, Fund, and IPO Onchain

Trending

Crypto Transfers Between Korean Exchanges and Cambodia’s Huione Jump 1,400x to $8.9M
All news

Crypto Transfers Between Korean Exchanges and Cambodia’s Huione Jump 1,400x to $8.9M

27.10.2025
0

Cryptocurrency transfers between South Korea’s largest exchanges and Cambodia’s Huione Guarantee surged nearly 1,400 times last year....

Bitcoin Nears $116K as Stocks Rally on Signs of Thaw in US-China Trade Tensions

Bitcoin Nears $116K as Stocks Rally on Signs of Thaw in US-China Trade Tensions

27.10.2025
Sharplink Gaming Adds $80M in Ethereum to Strategic Reserve After Month-Long Lull

Sharplink Gaming Adds $80M in Ethereum to Strategic Reserve After Month-Long Lull

27.10.2025
Ledger Faces Backlash Over New Multisig App Fees Despite Technical Upgrade

Ledger Faces Backlash Over New Multisig App Fees Despite Technical Upgrade

27.10.2025
Your Crypto Isn’t Safe Outside the Blockchain, Vitalik Buterin Warns

Your Crypto Isn’t Safe Outside the Blockchain, Vitalik Buterin Warns

27.10.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz