How Many Ethereum (ETH) Are in Circulation?299

Ethereum, the second-largest cryptocurrency by market capitalization, has gained immense popularity since its inception in 2015. Its innovative blockchain technology, smart contract functionality, and decentralized applications (dApps) have attracted significant interest from investors, developers, and users worldwide.

One of the key aspects that investors and enthusiasts consider is the total supply of Ethereum in circulation. This number influences the scarcity, value, and overall market dynamics of the cryptocurrency.

Initial Supply and Issuance

Initially, when the Ethereum blockchain was launched in July 2015, it had a pre-mined supply of 72 million ETH. These coins were distributed to early investors and developers through an initial coin offering (ICO).

Since then, new ETH has been issued into circulation through a process known as mining. Miners are responsible for verifying and adding new blocks to the blockchain, and they are rewarded with ETH for their efforts.

Annual Issuance Limit

In October 2021, the Ethereum network underwent a major upgrade known as the EIP-1559 London hard fork. This update introduced a new monetary policy that limits the annual issuance rate of ETH to 18 million coins.

The EIP-1559 burning mechanism also burns a portion of the transaction fees, reducing the overall supply of ETH in circulation. The burning rate varies based on network congestion, but it has a deflationary effect on the currency.

Circulating Supply

As of February 2023, the circulating supply of Ethereum is approximately 122,373,866 ETH. This number is constantly changing as new blocks are added to the blockchain and ETH is burned through transactions.

Total Supply

The total supply of Ethereum is uncapped, meaning there is no predetermined limit to the number of ETH that can be created. However, the annual issuance limit and burning mechanism help to control the supply growth rate and mitigate inflation.

It is important to note that the total supply of Ethereum also includes ETH that has been lost or misplaced due to forgotten private keys, wallet hacks, or other incidents.

2024-11-25

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