Ethereum supply surpasses 120M ETH as staking, restaking surge

Josh O"Sullivan12 hours agoEthereum supply surpasses 120M ETH as staking, restaking surgeDespite Ethereum’s inflationary trend, staking and restaking gains momentum, boosting network security and rewards.1365 Total views16 Total sharesNewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe decentralized open-source blockchain platform Ethereum has recently hit a significant milestone as the total supply of Ether reached 120 million.

The development comes as both staking and restaking Ether (ETH) witness a surge in uptake, further reinforcing its proof-of-stake (PoS) consensus mechanism.

According to the latest data on Ultrasound.money, ETH supply has increased to approximately 120.28 million ETH, with 77,091 ETH issued over the last 30 days.Ultrasound.money data depicting a 0.583% annual inflationary trend for ETH total supply. Source: Ultrasound.money

Related:Boomer says ETH fundamentals at all-time high, price is ‘lagging’Supply growth outperforms burn rate

Alongside the 77,091 ETH issued in the last 30 days, 19,438 ETH was burned through the burning mechanism, resulting in a net supply increase of around 57,653 ETH.

According to Ultrasound.money, this supply growth rate currently stands at 0.58% annually, slightly rising to 0.69% over the last seven days.

The ETH burn mechanism, introduced as part of Ethereum’s London Hard Fork, previously established a deflationary pattern, but since issuance has outpaced it, ETH is now on an inflationary trajectory.Ultrasound.money data depicting burn rate, total burned in 30 days and issuance offset. Source: Ultrasound.money

Related:Ethereum gas fees: Too low or too high? No one can decideStaking, restaking impact

Replacing the proof-of-work consensus mechanism, Ethereum’s shift to PoS has improved the network’s security and participation rewards.

Although this is positive news for users, around 33.9 million ETH currently staked worth over half a trillion dollars is accruing rewards in newly issued ETH — contributing to further issuance.

This process is intensified through the surge in restaking, which compounds the issuance of new ETH as users restake their rewards and amp up issuance further.Ultrasound.money data depicting Ultrasound.money data depicting $0.56 trillion in TVL. Source: Ultrasound.money.56 trillion in TVL. Source: Ultrasound.money

Related:Ethereum ETFs show mixed signals as ETHE reports $31M outflowEigenLayer restaking TVL up 11% in one week

EigenLayer, a restaking platform on Ethereum, witnessed an 11% boost in one week in its total value locked (TVL), indicating a growth in the restaking market as users lock up Wrapped Ether (WETH) for rewards.

This growth, reflected by restaking platforms Symbiotic and Karak, reveals a growing trend that could indirectly contribute to Ethereum’s current inflationary total supply.

Magazine:AI may already use more power than Bitcoin — and it threatens Bitcoin mining# Blockchain# Cryptocurrencies# Proof-of-Stake# Ethereum# Rewards# Inflation# DeFi# Total Supply# StakingAdd reaction