Krutika Adani
As of now, there are approximately 120.3 million ETH in circulation. Unlike Bitcoin, Ethereum does not have a fixed supply cap.
Issuance – New ETH is created through staking rewards.
Burning – A portion of transaction fees is permanently removed via EIP-1559, reducing supply over time.
Currently, over 30 million ETH is locked in Ethereum’s staking contracts, securing the network and earning validator rewards.
Since the London Hard Fork (EIP-1559), over 4 million ETH has been burned, making ETH deflationary at times when burn rates exceed issuance.
With staking and burning mechanisms in play, Ethereum’s circulating supply may continue to decrease over time, making it more scarce and potentially more valuable.