Recent market dynamics have once again brought Ethereum Supply Earlier this year, Ethereum reached a significant turning point in circulating supply, surpassing 120 million ETH, and the number continues to grow.
Unlike other prominent cryptocurrencies like Bitcoin and Cardano, which have fixed supply limits, Ethereum is designed with an unlimited supply of tokens. This fundamental difference makes Ethereum Inflationary assetsT, which has an ever-increasing supply.
On the chain Data from Ultrasound.money has highlighted the growing supply of ETH in recent months amid… Significant price fluctuations For cryptocurrency. The latest data indicates that the total supply of Ethereum has now reached approximately 120.28 million ETH.
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Over the past seven days alone, 16,039 new ETH tokens have been issued. This is consistent with a year-over-year inflation rate of 0.70%. Interestingly, this data shows that 243,886 ETH tokens have been created in the past four months since the Dencan upgrade in March.
What does this mean for Ethereum?
The inflationary mechanism in Ethereum is primarily countered by burning tokens. This burning mechanism was introduced as part of the London hard fork of Ethereum in order to introduce a deflationary mechanism for Ethereum. This mechanism aims to reduce the total supply of Ethereum by burning a portion of transaction fees, thus introducing a deflationary balance.
However, data from Ultrasound.money shows that burns are currently lagging behind releases, and Ethereum is now on an inflationary trajectory. In particular, 2,028 ETH have been burned in the past seven days, compared to 18,075 ETH released in the same time frame. This continued upward trend in supply growth could put pressure on the price of ETH if demand declines.
At the time of writing, Ethereum is trading at $2,615 with no significant gains or losses in the 24-hour timeframe. Looking at the broader price action over the past seven days shows that Ethereum has been trading largely within the range of $2,750 on the upper end and $2,530 on the lower end. The most recent price action has seen Ethereum rebound to $2,540 in the past 12 hours. If this continues, Ethereum could drop to $2,530 within the next 12 hours. Maybe push up And retest the $2750 level in the next few hours.
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According to Latest figures from Greeks.live, there are approximately 184,000 ETH options It is set to expire. Today, these options represent a large notional value of $470 million and feature a call-put ratio of 0.8 and a maximum pain point of $2,650. This high call-put ratio value means that market participants are currently buying more puts than calls, which in turn indicates bearish sentiment.
Image from Dall-E, chart from Tradingview.com
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