- The increased demand for the Ethereum network has led to an increase in the burn rate.
- This has led to a decrease in the circulating supply of the coin.
Ethereums [ETH] Circulating supply fell to a new low after the merger, according to data from Ultrasound.money.
In the past month, 86,219 ETH worth approximately $300 million at the altcoin’s press price has been withdrawn from circulation in the past 30 days.
The decrease in circulating supply of ETH showed that the Proof-of-Stake (PoS) network has seen an increase in demand and usage, increasing its burn rate.
AMBCrypto before reported that the daily number of new addresses created on the Ethereum network recently surpassed 116,000, a record in the past year (YTD).
This meant an increase in user activity on the Layer 1 (L1) network.
At the time of writing, the circulating supply of ETH stood at 120.07 million ETH, the lowest level in 548 days since the network switched from Proof-of-Work (PoW), in an event colloquially referred to as ‘The Merge’ .
Source: Ultrasound.money
Ecosystem performance in the past month
A review of Ethereum’s decentralized finance (DeFi) ecosystem revealed an increase in total value fixed (TVL) over the past month.
According to DefiLlamas According to data, Ethereum’s TVL at the time of writing was $51 billion, up 21% in the 30 days. During that period, Lido Finance, the leading protocol in the chain, saw its TVL increase by 27%.
Amid the recent rally in the altcoin market, Ethereum witnessed a spike in its decentralized exchange (DEX) volumes over the past month.
According to data from Artemis’the daily trading volume of the DEXes housed in Ethereum has increased by 161% over the past 30 days.
Source: Artemis
As for the network’s non-fungible token (NFT) sector, it also witnessed growth in the past month.
According to data from CryptoSlamNFT sales volume in the last 30 days was $617 million, up 17%.
This spike in trading volume occurred despite a 57% decline in the number of NFT sales transactions completed during that period.
The foreign exchange reserve rises to the highest point in one month
With the crypto market significantly overheating and the crypto fear and greed index pointing to a marked increase in greedy sentiment, ETH’s sell-off has soared.
How much are 1,10,100 ETHs worth today?
This has resulted in a spike in ETH supply on exchanges. Per CryptoQuant’s According to data, ETH’s foreign exchange reserves at the time of writing stood at 14.1 million, the highest level in the past month.
Source: CryptoQuant
When an asset’s foreign exchange reserve increases in this way, it indicates an increase in selling pressure.