According to the data information of Ultra Sound Money, after the merger of Ethereum, the trend supply of Ethereum has decreased from 3.79% to - 0.1%, and the current supply is 120.52 million, which indicates the mode of deflation. A decrease in the supply of tokens means an increase in prices.
Crypto Rover, a data encryption investment analyst, upgraded the deflation of Ethereum on Twitter, saying that "Ethereum has been deflating for 14 consecutive days":
It should be noted that the deflation of tokens has a positive effect on token prices. With the decrease of the selling rate and the number of tokens, ETH may repair the previous price trend. As a result, investors gradually estimate the price increase.
Before the highly anticipated Ethereum Merge meant the change of the consensus mechanism from PoW to PoS, the ETH supply remained at 120520000. However, after the merger, the supply of Ethereum appears to be deflationary.
In particular, Ethereum has shown a trend of deflation in the past 30 years. It is not a coin that has been publicly issued.
It can be said that many ETH tokens were damaged to pay transaction fees, which caused the deflation of token supply.
It is particularly noted that the connection of Ethereum from PoW to PoS system has demonstrated a great effect in the reduction of dynamic password supply. On the whole, the reward level of mining decreases significantly when the transformation is carried out.
On the premise of compensation for the reduced reward level, many ETHs were damaged, resulting in the scarcity of tokens, which led to the deflation of their supply.