According to data taken from Glassnode, the Ethereum supply held on various cryptocurrency exchanges hit a four-year low point as ETH held on exchanges plummeted by over 10% in the last few days. Yesterday all the centralized exchanges tracked by the analytics firm accumulated to about 19.09 million ETH as compared to the previous low of just under 20 million ETH in July 2018.
The drastic reduction in Ethereum's supply comes as a result of more and more ETH being locked up for staking and as the ETH network gets ready for its biggest ever Ethereum 2.0 upgrade that has been scheduled to happen on 19 September. This has also led to ETH's price skyrocketing by almost 50% going from its recent low of $1090 to over $1640 as the entire crypto market slowly recovers from the ongoing tech market recession.
Lucas Outumuro, the director of research at data analytics startup IntoTheBlock, tweeted a chart today that demonstrates the historical data of Ethereum's net issuance and its projection beyond the upcoming merge of of the Ethereum Mainnet with the Beacon Chain.
Yesterday, the creator of Ethereum, Vitalik Buterin gave a speech about "the longer-term future of the Ethereum protocol" while attending the annual Ethereum Community Conference
(EthCC) in Paris, France. He talked about the upcoming transition who's goal was to make Ethereum much more powerful and robust and also turn ETH from an inflationary to a deflationary cryptocurrency as a result of the EIP-1559 protocol that proposes to burn ETH instead of giving it to miners.
Buterin's speech also included the roadmap that had been previously developed to show the overall changes coming to the Ethereum protocol including the the merge, the surge, the verge, the purge and finally the splurge while also explaining what each term was meant to represent.
The merge represents Ethereum mainnet merging with the Beacon chain turning ETH into a deflationary asset and the transition between being PoW to PoS cutting power usage by 99%, the surge denotes the sharding and the remarkable increase in the network's scalability, the verge is the introduction of Verkle Trees that assist in optimizing storage on Ethereum and help reduce node size, the purge eliminates historical data and bad debt thereby reducing the hard drive space needed for validators while the splurge is a combination of smaller miscellaneous upgrades which ensure the network runs smoothly.
The crypto tracking and analysis platform CoinMarketCap anticipated that ETH would trade at an average price of $2,539 by the end of July as a result of over 11,500 community votes. At the same time, Ethereum Classic (ETC) also saw remarkable gains over the last few days as a result of the public support and the enthusiasm over the Merge upgrade on the main Ethereum blockchain.