New ETH issuance drops 92,8% after network upgrade

The growth in the number of transactions increased the amount of the average fee

21.09.2022 - 14:15

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What’s new? Within a short period after the Ethereum blockchain switched to the Proof-of-Stake (PoS) consensus algorithm, daily ETH issuance decreased by 92,87%. The figure dropped from 48 400 coins to 3893. According to the observations of experts of the analytics company Glassnode, the growth in the number of transactions immediately after the upgrade triggered an increase in the amount of the average fee. This led to a deflation within 12 hours.

Glassnode report

What else does the report say? According to analysts, there are currently more than 429 600 active validators on the Ethereum network. More than 11 360 validators were added to the network in just September, indicating growing investor confidence as the risk of technical issues associated with the upgrade decreases.

Experts noted that most of the ETH in staking is held by various providers and amounts to 10,071 million coins (69,04% of the total). The top four service providers — Lido, Coinbase, Kraken, and Binance — manage a combined 8,18 million ETH, accounting for 56,08% of the total.

As of September 21 at 13:50 UTC, the asset is trading at $1329,66, having lost 2,08% overnight, according to Binance.

To learn how major crypto services hinder the decentralization of Ethereum, see GetBlock Magazine's article.

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