In a landmark move for the cryptocurrency world, according to IntoTheBlock, Ethereum Its supply has been reduced by 66,000 ETH in 2023.
This is as a result of Ethereum’s ‘Merge’ transition to proof-of-stake (PoS) consensus that took place in September 2022. output. With the new consensus mechanism, some of the ETH transaction fees are burned. This has made Ethereum deflationary.
In 2023, the supply of Ethereum reduced by 66k $ETH due to burning a fraction of transaction fees. This move has made Ethereum deflationary, which is great news for crypto enthusiasts seeking scarce digital assets. #Ethereum #deflation pic.twitter.com/2RuwiioffW
— IntoTheBlock (@intotheblock) March 18, 2023
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For those unfamiliar with the term, a deflationary currency is a currency in which the money supply decreases over time. This is in contrast to inflationary currencies, where the money supply increases over time.
In particular, deflationary currencies seek out scarce digital assets as they believe scarcity can increase the value of an asset. crypto- It is particularly attractive to enthusiasts.
April’s Shanghai Update
It is worth noting that another highly anticipated Shanghai-Capella upgrade, also known as the Shapella upgrade, is scheduled to go live on April 12, 2023.
The most notable aspect of this upgrade is Ethereum Improvement Proposal (EIP) 4895, which will bring validator staking withdrawals to the mainnet. This is a crucial feature that was left out during Ethereum’s transition to proof-of-stake (PoS) consensus after its Merge upgrade in September last year.
As Koinfinans.com reported, ETH is trading around $1,816.52 at the time of writing. The price of the asset has seen solid growth, increasing by 26% in the last 7 days.