ETH Supply Dynamics

Definition ∞ ETH Supply Dynamics refer to the forces that influence the total circulating amount of Ethereum (ETH) tokens. These dynamics include new ETH issuance through block rewards, the burning of ETH via transaction fees, and ETH locked in staking or decentralized finance protocols. These factors collectively determine the asset’s availability in the market.
Context ∞ ETH Supply Dynamics are a critical focus in cryptocurrency news, particularly since Ethereum’s transition to Proof-of-Stake and the implementation of EIP-1559, which introduced a burning mechanism for transaction fees. Changes in these dynamics can significantly impact ETH’s scarcity and price, drawing constant analysis from market participants.