Ethereum completed one of its historic upgrades in mid-September. The Merge created the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Unfortunately, the post-Merge events brought deflationary situations for the blockchain. As predicted by some crypto experts, the price of Ethereum has dropped drastically following its transition to PoS. Also, the dynamics of ETH supply have changed after the upgrade. Related Reading: Crypto Market Shows No Signs Of Positive Movement, Is ‘Uptober’ A Myth? According to data from Ultrasound Money, there’s a reduction in the daily amount of ETH that hit the market. Furthermore, the data revealed that the declining record was about 90% after the Merge. This change could be because Ether is no longer mined since it’s now a PoS network. Burning Mechanism Reduces Ethereum Supply A careful study of Ethereum supply indicated a reduction over the past five days. With such a trend, the total supply for the second largest crypto asset plunged by about 5,500 ETHs since October 8. The decline is linked to the implication of EIP-1559 and the burning mechanism for the token. This ensures that a percentage of fees paid for ETH transactions is burned. Before the transition to PoS, miners receive about 13,000 ETH from the Ethereum network as rewards. The network makes payments daily to secure the ecosystem and for processing transactions. But the Merge changed the sequence for the network. The Ethe...
Why is Bitcoin Cash Price up Today?
