Ethereum is on Track to Become Deflationary as Issuance Plummet
On-chain data from Ethereum blockchain aggregator Ultra Sound Money shows that the number of Ether being issued daily has recorded a dramatic slump since the Merge upgrade went live. The analytics provider reported that Ethereum’s issuance rate has been slashed by roughly 98%, further suggesting that the crypto asset is on track to becoming deflationary.
At the time of writing, the data provider showed that the network’s ETH supply has only increased by 7,665.95 ETH since the Merge. Based on its former Proof-of-Work mechanism, it would have added roughly 128,422.13 ETH within the same period.
That said, some have argued that the notable decline in token issuance recorded was not an effect of the PoS system coming live but was because of diminished network activity. However, other analysts have pointed out that this argument fails to hold water, considering network activity also dropped before the Merge but this did not diminish the issuance of Ether.
Ethereum Yet to Acquire Deflationary Status
Nonetheless, data suggests that Ethereum has yet to become a deflationary asset because the overall token issued remains higher than the supply burned. This suggests that supply is still on the rise, albeit at a notably slower pace.
Data from Ultra Sound Money shows that about 646.09 ETH has been burnt over the last 24 hours, but the network issues about 772 tokens daily, which exceeds the daily burn rate.
Tether Goes on Polkadot
In other news, Tether (USDT) has been launched on the Polkadot (DOT) blockchain, an interoperability-focused network service provider. Tether broke the news on Twitter on September 23, with Polkadot confirming the post shortly after. This means USDT is now natively available on Polkadot.
The latest announcement from the Tether team shows that USDT has expanded its position across blockchains, with the Stablecoin being supported on Ethereum, Solana, Polkadot, Algorand, EOS, Liquid Network, Omni, Tron, and Bitcoin Cash’s Standard Ledger Protocol.
Commenting on the latest development, Paolo Ardoino, chief technology officer at Tether, noted: “We’re delighted to launch USDT on Polkadot, offering its community access to the most liquid, stable, and trusted stablecoin in the digital token space.” He added: “Polkadot is on a trajectory of growth and evolution this year, and we believe Tether's addition will be essential in helping it continue to thrive.”
Ethereum Price Continues to Struggle Post-Merge
Despite the numerous upgrades and improvements, the Merge brings to the table, including faster network speeds and a decrease in issuance rate, Ethereum still cannot catch a break from the overwhelming bearish pressure.
Since the Merge, the second largest cryptocurrency has shed over 21% of its value, falling from the $1,630 region to the sub-$1,300 area.
At this point, it is becoming notably obvious that the Merge might not yield the price surge many had hoped for. Already, the cryptocurrency has lost all the gains it amassed in the frenzied run-up to the event.
ETH Statistics Data
ETH Current Price: $1,290
ETH Market Cap: $158.6B
ETH Circulating Supply: 122.5M
ETH Total Supply: 122.5M
ETH Market Ranking: #2
This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.