Cryptocurrency News

Ether sees the lowest supply since the implementation of The Merge

In one of the biggest changes in the economics of Ether, the ecosystem has witnessed the circulation of the token fall to its lowest value. A few reports indicate that there are approximately 120.5 million tokens available at the moment. The number is true as of February 01, 2023. This is one of the biggest changes for Ether since the time it went through The Merge, a process that transitioned the mechanism from Proof-of-Work to Proof-of-Stake.

One of the reasons being quoted for the lowest supply of the token is the rising prices of Bitcoin. Another factor that could be affecting the total supply is the rise of the equity market. Experts believe that in times like these, traders are more likely to respond by buying tokens that have higher risks and that are available exclusively on-chain.

It further affects the demand of the network, thereby increasing the burn from every transaction. With tokens being burned, the supply naturally slips down.

Investors have found such a situation to be rather interesting. Price and supply are closely linked to every time of economy, including the digital one. With the supply of digital tokens at its lowest, the price goes up to create a better chance for those who want to sell.

2023 began with the transaction cost constantly rising on Ethereum. It even went on to match the level of the third quarter of 2021. That is the period when the price for Bitcoin and Ethereum were much higher.

Meanwhile, the NFT activities on Ethereum are on the rise amid a small resurgence. After a time when the activities were at their lowest, the resurgence simply indicates that the on-chain activities are returning to normal conditions. They are still far from the 2021 scenario; however, a positive indication has given hope that on-chain activities are on the way to not just becoming normal but most probably surpassing their highest-ever level.

Analysts continue to review the fluctuations in the supply of Ether tokens, for the low supply signals a higher price as compared to the high supply when the prices are low. Supply of Ether remains the core subject right now. Analysts would want the supply to stay at the lowest for a while unless there is a decent margin hidden at a lower price.

Jason Palmer

Jason Palmer joined CoinNewsSpan as an editor and analyst. He has over five years of experience as a forex analyst. He holds a master's degree in business administration with specialization in finance. He is actively involved in analyzing the prevalent crypto trends. He has a keen interest in commodities and forex trading.

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