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TITLE: Ethereum’s Circulation Supply Drops to New Low

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It is reported that the total circulation supply of Ethereum fell to 120490946, a new low since the merger, according to the data of Ultrasound. Money, about 3…

TITLE: Ethereums Circulation Supply Drops to New Low

It is reported that the total circulation supply of Ethereum fell to 120490946, a new low since the merger, according to the data of Ultrasound. Money, about 30200 ETHs were reduced compared with the merger.

The circulation supply of Ethereum decreased by about 30200 ETHs

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KEYWORDS: Ethereum, circulation supply, Ultrasound.money, merger

Ethereum, the world’s second-largest cryptocurrency by market capitalization, has been seeing a gradual decrease in its circulation supply over the past few months. According to Ultrasound.money, on July 14, the total circulation supply of Ethereum decreased to 120,490,946. This represents a new low since the merger and is about 30,200 ETHs lower than the previous measurement.

The reduction in Ethereum’s circulation supply indicates that there is a decrease in the number of coins available in the market. This can be attributed to several factors, including trading and holding patterns by investors and the Ethereum 2.0 staking. Ethereum’s migration to a proof-of-stake (PoS) consensus mechanism is facilitating the transition from the current proof-of-work (PoW) system to a more energy-efficient and secure PoS system. This transition allows users to “stake” or hold onto their Ether (ETH) in specialized wallets as a way of securing the network while earning rewards.

The shift to PoS also means that the process of mining Ethereum will be phased out, leading to a decrease in the supply of new coins entering the market. The Ethereum 2.0 upgrade is still underway, and it is expected to take some time before it is fully implemented. However, the decrease in the circulation supply of Ethereum indicates that the transition is already having an impact on the market.

Another factor that could be contributing to the decrease in Ethereum’s circulation supply is the increase in the number of ETHs that are being locked away in smart contracts. These smart contracts are automated programs that facilitate transactions on the Ethereum blockchain, and they require a minimum amount of ETH to function. With the rise of decentralized finance (DeFi) and other innovative use cases, there has been a surge in demand for locking ETH in smart contracts, leading to a decrease in its circulating supply.

In conclusion, Ethereum’s circulation supply has dropped to a new low, indicating a shift in the market dynamics. The decrease can be attributed to several factors, including the transition to PoS, locking ETH in smart contracts, DeFi applications, and investment patterns. The long-term effects of these factors on Ethereum’s circulation supply and price remain to be seen, but they suggest a steady shift towards a more stable and secure ecosystem.

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