Ethereum‘s most recent upgrade, Dencun, was activated on March 13, but the previous high-profile upgrade significantly helped reduce the total Ethereum supply. According to data from the blockchain data analysis platform CryptoQuant, as of mid-week, the total Ethereum supply has retreated to its lowest level since August 2022. Shortly after this date, Ethereum underwent its most significant upgrade, known as The Merge, transitioning from proof-of-work to proof-of-stake, which contributed to the reduction in supply during this period.
The Impact of Dencun on Ethereum
The rate of decline in Ethereum supply is currently the fastest seen since May 2023. According to data from Ultrasound money, Ethereum’s supply has decreased by 0.872% annually in the last 30 days. For comparison, the decline rate since The Merge has been 0.246%. CryptoQuant’s head of research, Julio Moreno, stated on March 13:
“High activity in the Ethereum network led to high transaction fees and consequently more fee burning.”
According to the data, since The Merge, more than 1.56 million Ethereum has been burned, while less than 1.12 million Ethereum has been issued. This situation has led to a net decrease of over 446,000 Ethereum, valued at approximately 1.62 billion dollars at current prices.
Record Levels Attract Attention
Solana‘s network activity has largely attracted attention, but activity on Ethereum continues to be noteworthy. The seven-day moving average of transactions on the Ethereum network is close to the highest level in 12 months, recorded in January. According to The Block Data Dashboard, 1.26 million transactions occurred on the second-largest blockchain network by market value on March 16.
Meanwhile, the number of active addresses on the Ethereum network remains at the highest levels of the year and the past 12 months. Data Dashboard figures show that approximately 540,000 active Ethereum addresses were recorded on March 16.
Similarly, the number of new addresses on the Ethereum network is also at the highest levels in 12 months. According to Data Dashboard data, there were more than 120,000 new Ethereum addresses on the network on March 16. In addition, the volume in the Ethereum ecosystem has also risen to the highest levels in two months. The total transaction volume exceeded 7 billion dollars on March 16.
