The upcoming hard fork Shanghai has resulted in some changes in the network. One of them is an all-time low in the supply of Ether. Ethereum’s circulating supply hit a low of 120.5 million Ether, according to data from ultrasound.money.
This drop in supply is due to the switch from Proof of Work (PoW) to Proof of Stake (PoS). Before the merge, the network paid thousands of ETH daily to miners as block rewards for processing transactions and securing the network. The amount of Ether distributed under PoS is significantly lower, leading to an all-time low in supply.
In addition to the lower supply, gas fees, the transaction costs on the Ethereum blockchain, are also rising. These have been steadily increasing since the beginning of 2023 and are currently at the level of the third quarter of 2021, when the ETH price reached an all-time high.
While the Ethereum network is preparing for the Hard Fork Shanghai, there are also concerns about possible delays. The hard fork is intended to allow users to withdraw their staking rewards. Currently, around 16.4 million Ether is locked on the Beacon Chain.
In summary, Ethereum is undergoing more and more changes. With the shift from PoW to PoS and the upcoming Hard Fork Shanghai, we will see further impact on the supply of Ether and the gas fees. It remains exciting to see how the cryptocurrency will develop in the future.
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