Definition ∞ Ethereum Supply refers to the total quantity of Ether tokens in existence at any given time. This metric includes all Ether that has been issued since the genesis block, minus any tokens permanently removed from circulation. It represents a crucial economic indicator for the network, influencing market dynamics and investor perception. The supply mechanism has evolved significantly, particularly with the transition to Proof-of-Stake and the introduction of EIP-1559, which incorporates a burning mechanism for transaction fees.
Context ∞ The current discussion around Ethereum Supply centers on its deflationary potential following the Merge and subsequent protocol upgrades. Observers frequently analyze the net issuance rate, which accounts for new Ether created and the amount burned, to assess the asset’s economic trajectory. A sustained period of net negative issuance would signify a decreasing total supply, a development closely watched by market participants and digital asset analysts. Such shifts are regularly reported in crypto news, providing essential data points for understanding Ethereum’s valuation and network health. These supply dynamics are a key factor in debates concerning Ether’s status as a store of value.
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