While Ethereum has not been consistent in its bullish trajectory in recent weeks, its circulating supply has done the opposite. According to data Thanks to Ultrasoundmoney, the amount of ETH in circulation has skyrocketed to over 120.72 million ETH as of today.

While the escalate in supply is not clearly negative for ETH, it still represents a significant shift in network dynamics, driven in enormous part by the adoption of Ethereum’s proof-of-stake (PoS) model.

Supply Growth – How and Why?

The escalate in Ethereum’s total supply to 120.72 million ETH, Ultrasound.money data shows, reflects the network’s increasing activity over the past month.

During this period alone, 77,102 ETH was issued on Ethereum, while 19,402 ETH was withdrawn from circulation as a result of the burn mechanism introduced in the recent London demanding fork.

The immaculate escalate of around 57,653 ETH indicates a slight escalate in the annual growth rate of supply from 0.58% to 0.69% over the last 7 days.

It is worth noting that with Ethereum’s transition from a proof-of-work (PoW) model to a PoS model, the network not only significantly improved its security but also increased the rewards for participation.

In terms of the likely reasons behind the escalate in supply, there are currently around 33.9 million ETH on the network, which is generating significant benefits in the form of newly issued ETH.

It seems that this large-scale staking is contributing significantly to the growth of the total supply of Ethereum. Moreover, the staking process has been further strengthened by the re-staking trend, where participants reinvest their staking rewards into the network.

This cycle of ETH reacquisition has a compounding effect of issuance of novel ETH, increasing supply even as the network is heading towards an “apparent” inflationary trajectory following the initial deflationary expectations set by the ETH burn mechanism.

Ethereum Market Performance

For now, the price of Ethereum seems to be gradually increasing, from $2,500 last Thursday to $2,652 at the time of writing, which is a 9.3% escalate in the last 7 days.

This escalate in value coincides with the valuation of ETH market capitalization, which increased by almost $20 billion during the same period. Despite this escalate, ETH daily trading volume was the opposite.

Notably, over the past week, the metric has fallen from over $21 billion to its current level of $12.8 billion. Regardless, many analysts in the crypto space remain bullish on Ethereum.

Earlier today, a renowned analyst known as crypto titan X set a $3,000 target for ETH. According to the analyst, ETH looks poised for a major rally as the “CME futures GAP” upside remains unfilled.

#Altcoins #Ethereum Goal $3000 #ETH looks like it’s ready to move, with the CME futures price gap above still waiting to be filled. photo: twitter.com/6lC2d6lgQ6

— Crypto Titan (@Washigorira) August 15, 2024

Featured image created with DALL-E, chart from TradingView