Ethereum Total Supply Hits 120M ETH Milestone

Ethereum (ETH) has achieved a total supply of 120 million ETH, marking a landmark point for the decentralized blockchain platform.

Data from Ultrasound.money indicates that 77,091 ETH have been released in the last 30 days, bringing the total ETH supply to about 120.28 million. This achievement coincides with a surge in Ethereum’s staking and restaking market, bolstered by its use of the proof-of-stake (PoS) protocol.

Annual Inflationary Trend for ETH Total Supply. | Source: Ultrasound.money

Ethereum’s Supply Actions

The past 30 days saw the issuance of 77,091 ETH, with 19,438 ETH burned from circulation. As a result, the net supply of ETH increased by about 57,653, signaling a change in Ethereum’s supply dynamics.

Additionally, the data shows that the annual growth rate of Ethereum’s supply is 0.58%. However, this rate has spiked to 0.69% over the past seven days, underscoring the continuous shifts in Ethereum’s inflationary patterns.

The ETH burn mechanism was introduced during Ethereum’s London Hard Fork, producing a deflationary environment. Consequently, ETH’s supply is at a pace higher than its burn rate as the network enters an inflationary phase.

Total ETH Burned in 30 Days. | Source: Ultrasound.money

Impact of Ethereum’s PoS Transition

The Ethereum network has benefited from switching from a proof-of-work (PoW) to a PoS consensus mechanism. Some of the benefits include improved security and higher participation rewards for validators.

Besides benefitting the network users, this switch also supports the issuance of new ETH. Presently, 33.9 million ETH, worth over $500 trillion, has been staked from the newly issued ETH.

This trend has led to increased ETH restaking. Restaking is a rapidly growing trend that adds more ETH to the overall supply by allowing users to stake their rewards for more Ether.

Ether’s $0.56 Trillion in TVL. | Source: Ultrasound.money

For example, EigenLayer, the prominent Ethereum restaking platform, had an 11% growth in its total value locked (TVL) after one week, signifying a boost in user involvement. This trend is also noticeable on platforms such as Symbiotic and Karak, further contributing to the restaking market’s overall growth. With more ETH being locked and awarded as rewards, this restaking activity growth contributes to Ethereum’s current inflationary supply.