According to Ultrasound money, the total Ethereum supply stands at over 120 million, and the amount of staked Ethereum on the Beacon chain is 13.6 million ETH, which is over 10% of the asset supply.
The tracker predicted that Ethereum PoS would issue 1700 ETH daily if staked ETH touches 14 million. It noted that as the number of staked Ethereum increases, the number of issued assets would increase too.
Meanwhile, a Chainalysis report said the merge would entice more institutional investors to Ethereum. According to the report, ETH would behave more like bonds and commodities, boosting their confidence in the token.
Ethereum burning mechanism
Ethereum’s burning mechanism will likely ensure that the supply of the token decreases.
In the past 24 hours, 1,967.60 ETH has been burned, representing 1.37 ETH per minute, and the network has burned 38,236.53 ETH in the last 30 days.
Protocols responsible for most of the burned ETH in the last 30 days include OpenSea, Uniswap V3, Uniswap V2, Gem, and 1inch v4, meaning NFT and DeFi protocols are mostly responsible for burned ETH.
The migration of Ethereum away from mining and into a proof of stake protocol is a major event for the crypto universe. It turns the second largest token into a more transaction-ready system. It also addresses some of the power usage issues bitcoin has. The fact it is reducing supply and paying dividends to investors is akin to the practice many corporations follow with their shares.
Institutional investors hope Ethereum will ultimately submit to a dividend discount valuation model which would bring it closer to being a conventional asset.
It is reasonable to expect some steadier action ahead of such a momentous event. However, that does not detract from the sector’s reliance on ample liquidity to support prices.
Bitcoin rallied today in a dynamic manner to break the short-term (3-week) downtrend and to confirm support in the region of the psychological $20,000 area.