Ethereum supply on trend to drop below pre-Merge levels


The supply of Ethereum's native asset ether (ETH) appears on trend to deflate to pre-Merge levels as a result of more coins being burned than created for the last few weeks, on-chain data shows.

At the time of The Merge on Sept. 15, Ethereum's upgrade from proof-of-work to proof-of-stake consensus, the ETH supply was 120,520,000 coins. After The Merge, the supply rose to 120,534,000 on Oct. 8, but has since fallen back to 120,522,000, now sitting just a couple of thousand coins more than the supply recorded at The Merge. This deflationary trend has occurred as more coins have been burned for transaction fees than were created as rewards for validators in recent weeks.

“Since issuance is significantly reduced now compared to pre-Merge, even a slight increase in burned ETH from recent levels would make daily net emission go negative,” said Kevin Peng, research analyst at The Block. 


The deflationary supply after The Merge


One of the many changes from The Merge is a 90% reduction in new token supply issuance amid the elimination of miner subsidies in the former proof-of-work blockchain. Combined with the EIP-1559 feature on Ethereum, where a portion of transaction, or gas, fees are "burned," it's estimated that more ether is destroyed than added to supply whenever the transaction fees go above 16 gwei, the very trend being observed now. In fact, the supply is merely 1,700 ETH away from getting to pre-Merge level and continuously going down, according to data from 

If this trend continues, and fee burns remain greater than new issuance, we may see supply growth drop below the level prior to The Merge in the next few days, noted DeFi researcher Mika Honkasalo. "Post-merge total supply change is about to turn negative in the next 5-7 days," Honkasalo tweeted


Source : by Vishal Chawla - October 22, 2022


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


Automata ICO Limited, a Company incorporated in Ireland with its registered office at 3rd Floor Ormond Building, 31-36 Ormond Quay Upper, Dublin 7, D07 Ee37, Ireland registered in Ireland under number 690280 has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing, we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS.

Automata ICO Limited, a Permanent Establishment incorporated in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.