{"id":66692,"date":"2022-09-05T14:39:47","date_gmt":"2022-09-05T11:39:47","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=66692"},"modified":"2025-09-07T02:41:13","modified_gmt":"2025-09-06T23:41:13","slug":"glassnode-ethereum-poised-to-become-deflationary-after-the-merge","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/glassnode-ethereum-poised-to-become-deflationary-after-the-merge\/","title":{"rendered":"Glassnode: Ethereum poised to become deflationary after The Merge"},"content":{"rendered":"<p>Analysts at Glassnode conclude that, after The Merge activation, Ethereum is likely to become deflationary.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The chart below presents <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> issuance under two scenarios:<\/p>\n<p>\ud83d\udfe0 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> issued on both PoW + PoS chains, with the EIP1559 burn (usually inflationary).<\/p>\n<p>\ud83d\udd35 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> issued on PoS + EIP1559, simulating a Merge going live in Aug 2021, demonstrating a high chance of supply deflation. <a href=\"https:\/\/t.co\/1gHeoDgguw\">pic.twitter.com\/1gHeoDgguw<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1566732072294576128?ref_src=twsrc%5Etfw\">September 5, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The chart attached to the tweet models ETH issuance under:<\/p>\n<ul class=\"wp-block-list\">\n<li>the current issuance on two chains \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">PoW<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/ethereums-move-to-proof-of-stake-pos-what-you-need-to-know\">PoS<\/a> \u2014 and the operation of the token-burn mechanism <a href=\"https:\/\/u1f987.com\/en\/news\/ethereums-london-hard-fork-goes-live\">EIP-1559<\/a>;<\/li>\n<li>the operation of the system after The Merge activation, as modeled in August 2021.<\/li>\n<\/ul>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">With exception of Aug this year, where average gas prices are sub 20-GWEI, the simulated condition PoS chain + EIP1559 burn is net deflationary.<\/p>\n<p>This means that with any meaningful upwards fee pressure, <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> supply post Merge may be expected to decrease on net. <a href=\"https:\/\/t.co\/6v2NHscANY\">pic.twitter.com\/6v2NHscANY<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1566732080087592960?ref_src=twsrc%5Etfw\">September 5, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00ab\u0417\u0430 \u0438\u0441\u043a\u043b\u044e\u0447\u0435\u043d\u0438\u0435\u043c \u0430\u0432\u0433\u0443\u0441\u0442\u0430 \u044d\u0442\u043e\u0433\u043e \u0433\u043e\u0434\u0430, \u043a\u043e\u0433\u0434\u0430 \u0441\u0440\u0435\u0434\u043d\u044f\u044f \u0441\u0442\u043e\u0438\u043c\u043e\u0441\u0442\u044c \u0433\u0430\u0437\u0430 \u0431\u044b\u043b\u0430 \u043d\u0438\u0436\u0435 20 Gwei, \u0441\u043c\u043e\u0434\u0435\u043b\u0438\u0440\u043e\u0432\u0430\u043d\u043d\u0430\u044f PoS-\u0446\u0435\u043f\u044c \u0432 \u0442\u0430\u043d\u0434\u0435\u043c\u0435 \u0441 EIP-1559 \u044f\u0432\u043b\u044f\u0435\u0442\u0441\u044f \u0434\u0435\u0444\u043b\u044f\u0446\u0438\u043e\u043d\u043d\u043e\u0439\u00bb, \u2014 \u043f\u043e\u0434\u0447\u0435\u0440\u043a\u043d\u0443\u043b\u0438 \u0438\u0441\u0441\u043b\u0435\u0434\u043e\u0432\u0430\u0442\u0435\u043b\u0438.<\/p>\n<\/blockquote>\n<p>Experts noted that the ETH issuance rate on the Beacon Chain will rise as more validators join the pool.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Note that <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> issuance on the Beacon Chain increases as more validators enter the pool.<\/p>\n<p>Assuming a successful Merge event, it is likely that the validator pool will increase, as investor concerns of technical risk are addressed.<\/p>\n<p>Per Validator yield has declined to ~4.44% today <a href=\"https:\/\/t.co\/B34NKXYLUp\">pic.twitter.com\/B34NKXYLUp<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1566732090481053697?ref_src=twsrc%5Etfw\">September 5, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abAssuming the Merge goes ahead successfully. It is quite likely that the validator pool will grow, as concerns about technical risks disappear,\u00bb the experts noted.<\/p>\n<\/blockquote>\n<p>They note that the current annual yield from validator activity stands at 4.44%.<\/p>\n<p>According to Ultrasound Money, the projected post-Merge annual ETH issuance rate is 0.3%.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"264\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Ultra-1024x264.png\" alt=\"Glassnode: Ethereum poised to become deflationary after The Merge\" class=\"wp-image-183721\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Ultra-1024x264.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Ultra-300x77.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Ultra-768x198.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Ultra.png 1156w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/ultrasound.money\/\">Ultrasound Money<\/a>.<\/figcaption><\/figure>\n<p>About 730.06 ETH are burned each day. Since the activation of EIP-1559, 2.6 million ETH have been burned.<\/p>\n<p>The migration of the second-largest cryptocurrency to PoS <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-developers-narrow-the-timeline-for-the-switch-to-proof-of-stake\">is planned around September 15\u201316<\/a>.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After The Merge upgrade activation, Ethereum is likely to become deflationary.<\/p>\n","protected":false},"author":1,"featured_media":66693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,1273],"class_list":["post-66692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-glassnode"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/66692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=66692"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/66692\/revisions"}],"predecessor-version":[{"id":66694,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/66692\/revisions\/66694"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/66693"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=66692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=66692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=66692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}