Coinspeaker

Feb 5, 2025

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Ethereum Supply Reaches 120,521,523 ETH After Dencun Upgrade

Ethereum’s total supply has reached 120,521,523 ETH, a rise of 383 ETH since The Merge in September 2022. This increase raises questions about its implications for the coin and the ecosystem.

Dencun Upgrade Impact

• The Dencun upgrade, implemented last year, altered transaction fee processing.
• This change abolished the regular burning of transaction fees, which previously helped reduce overall supply.
• Analyst Jaehyun Ha indicates this new fee structure threatens Ethereum's status as "ultrasound money."
• Current network activity remains robust, but reduced fee burning suggests rising supply may continue.

Supply Trends and Security Concerns

• After The Merge, Ethereum's supply fell to about 120,064,500 ETH in April 2024.
• Post-Dencun upgrade in March, supply levels began to rise again.
• Some analysts attribute increased supply to users migrating to networks like Solana and newer Layer 2 solutions.
• Byoungjoon Kim from DeSpread Research warns that ongoing inflation could weaken Ethereum's security, as its Proof-of-Stake model ties network security to token value.