Home Crypto Events Ethereum’s Circulating Supply Reaches Record Low Post-Merge: What Does It Mean for Investors?

Ethereum’s Circulating Supply Reaches Record Low Post-Merge: What Does It Mean for Investors?


This decrease in circulating supply suggests a growing interest in Ethereum’s PoS network, fueled by a notable increase in new daily addresses being created. With over 116,000 new addresses established daily, Ethereum’s user activity has reached its highest level in recent times, showcasing a promising trend for investors.

Since “The Merge” from Proof-of-Work (PoW), Ethereum’s circulating supply has dipped to 120.07 million, marking the lowest level in 548 days. This milestone underscores the network’s transition towards a more sustainable and efficient consensus mechanism, attracting both institutional and retail investors alike.

Furthermore, Ethereum’s decentralized finance (DeFi) ecosystem has witnessed significant growth, as evidenced by a substantial increase in the total value locked (TVL) over the past month. According to DefiLlama’s data, Ethereum’s TVL has surged to $51 billion, reflecting a 21% rise in just 30 days.

Among Ethereum’s leading DeFi protocols, Lido Finance stands out with a remarkable 27% increase in TVL during the same period. This surge in DeFi activity highlights the network’s pivotal role in facilitating various financial services, including lending, borrowing, and yield farming.

In addition to the DeFi sector, Ethereum’s decentralized exchange (DEX) trading volumes have experienced a notable uptick amidst the recent altcoin market rally. Data from Artemis reveals a staggering 161% surge in daily trading volume among DEXs hosted on Ethereum over the past month, signaling growing investor interest in decentralized trading platforms.

Meanwhile, the non-fungible token (NFT) sector within the Ethereum network has continued to thrive despite a slight decline in transaction volume. Despite a 57% decrease in completed NFT sales transactions, the total sales volume has increased by 17% to reach $617 million in the last 30 days, according to CryptoSlam’s data.

This resilience in the NFT market underscores the enduring appeal of digital collectibles and the growing adoption of blockchain technology in various industries, including art, gaming, and entertainment.

As of the latest data available, the circulating supply of ETH has dwindled to 120.07 million, marking its lowest level in 548 days since the network’s transition, colloquially known as “The Merge,” from Proof-of-Work (PoW) to PoS. This milestone underscores the success of Ethereum’s transition to a more energy-efficient and sustainable consensus mechanism.

Moreover, an analysis of Ethereum’s decentralized finance (DeFi) ecosystem has revealed a notable uptick in the total value locked (TVL) over the past month. According to DefiLlama’s data, Ethereum’s TVL currently stands at an impressive $51 billion, representing a substantial 21% increase over the span of 30 days. Notably, the TVL of Lido Finance, one of the leading protocols on the Ethereum network, has surged by 27% during the same period, underscoring the growing prominence of Ethereum-based DeFi solutions.

In addition to the DeFi sector, Ethereum has also witnessed a surge in trading volumes on decentralized exchanges (DEXs) in recent weeks. Artemis’ data indicates that the daily trading volume among DEXs hosted on the Ethereum network has surged by an impressive 161% over the past 30 days. This surge in trading activity underscores the growing popularity of decentralized trading platforms among cryptocurrency enthusiasts, further cementing Ethereum’s position as a hub for decentralized finance and trading.

As the cryptocurrency market evolves, Ethereum remains at the forefront of innovation, driving advancements in decentralized finance, non-fungible tokens, and blockchain technology as a whole. With its growing user base, robust ecosystem, and ongoing development efforts, Ethereum continues to solidify its position as the leading smart contract platform in the ever-expanding digital economy.

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James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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