Ethereum (ETH) issuance turned deflationary over the weekend amid a market-wide rally.

ETH supply growth is roughly -0.10% per year — 622,000 ETH issued yearly and 739,000 ETH burnt yearly — according to Ultrasound.money data.

Source: Ultrasound.money

In a simulation where ETH continued to utilize the Proof-of-Work (PoW) mechanism, supply would be up a further 1.45 million ETH  — an increase of roughly 4% to the network — according to Ultrasound.money’s ‘Simulate PoW’ function.

However, the merge event — and switch to Proof-of-Stake mechanism — has removed 32 ETH from the asset’s total supply, switching ETH back to deflationary.

ETH nears $1600

Ethereum is trading near $1600 for the first time since FTX collapsed in November 2022, according to CryptoSlate data.

ETH broke the $1500 barrier on Jan. 14 and has continued to trade above the threshold since then. In the early hours of Jan. 16, ETH traded for as high as $1579 before retracing to its current $1,567.

In the last 30 days, ETH has outperformed Bitcoin’s price performance — gaining 34.2% — while BTC rose by 27% over the same period, according to CryptoSlate data..

The post Ethereum turns deflationary amid weekend market rally appeared first on CryptoSlate.

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Filed under: Bitcoin - @ January 16, 2023 8:25 am