Ethereum’s Net Supply Rises by 15,576 ETH in 7 Days

The supply of Ethereum has increased by 15,576 Ether tokens in a span of one week, or 7 days. This comes with different interpretations, such as market demand, network activity, and a balance between issue-burn mechanisms. 

Firstly, the core idea was to maintain a balance between the issuance and burning of tokens. A balance between the two aspects helps to maintain the network’s inflammatory image. However, that has not happened so far, and tokens are only on the rise.

The current supply is 120,326,064 with an annual growth rate of 0.675%.

Source: Ultra sound money

Next, the higher the demand, the higher the circulation could be on the network. In other words, issuance only becomes commonplace when demand is high and efforts are made to keep the price within a specific range. In order to mitigate inflation, EIP 1559 was implemented in June 2021. It includes the expectation that the token will have a lot of potential in the future. It could even trade as high as $4,000 by the end of this year.

That brings the discussion to the final aspect, which is network activity. A surge in network activity of any kind would require users to have the native token.

Staking is on the rise, reflecting a growing confidence in the token and its ecosystem. This aligns with positive Ethereum projections, suggesting a potential for further growth. For reference, ETH is currently trading at $2,346.88, up by 0.83% in the last 24 hours. While there has been a slight pullback of 6.13% in the past 7 days, analysts remain optimistic about the short-term Ethereum projections indicating a potential increase of at least 7.25% in the next 30 days.

Therefore, an increase in net supply in the last 7 days, or any time frame for that matter, brings out two pictures. One is related to the issuance-burning mechanism’s failure to meet its target, while the other is related to increased demand and optimism for a future bull run. The outcome remains uncertain; however, the token will probably disappoint.

It is more likely to complement BTC by marking upticks on the price chart. It also has a Spot ETF associated with the token, which is waiting for the streak of negatives to come to an end. Spot Bitcoin ETFs were last observed receiving banking inflows. A similar sight could be on the horizon for Ether ETFs.

According to CoinGecko, the net supply has increased by 75,301 ETH since the beginning of the year, that is, 2024. This follows the emission of 540,958 ETH and the burning of 465,657 ETH. The late 2022 was a deflationary phase, but the ongoing trend in 2024 has shifted towards an inflammatory phase.

In the middle of August, reports indicated that the total supply of ETH had surpassed 120 million. It was attributed to an increase in staking and restaking activities.