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Ethereum’s circulating supply hits 120M: What’s the impact on ETH?

2min Read

The surge in the number of ETH coins in circulation means the altcoin’s supply is currently inflationary.

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  • Ethereum’s supply spiked last month.
  • This has happened due to a decline in daily active addresses on the network.

46,138 Ethereum [ETH] worth around $176.22 million, at the altcoin’s press time price, have been added to circulation in the last month, pushing the altcoin’s circulating supply to a 30-day high of 120.14 million ETH, data from Ultrasound.money has shown.

Eth Supply

Source: Ultrasound.money

The steady surge in the number of ETH coins in circulation means the altcoin’s supply is currently inflationary. This happens when the network witnesses a decline in user activity.

AMBCrypto confirmed this decline, as data from Artemis revealed a decrease in the daily count of unique addresses interacting with the Ethereum blockchain in the past 30 days. 

According to the on-chain data provider, as of 5 June, 361,200 addresses completed at least one single transaction on Ethereum. This represented a 14% drop from the 421,000 unique addresses transacting on the network on 8th May.

In fact, during the period under review, the count of daily active addresses plummeted to a three-month low of 326,200 on 2nd June.

According to Artemis’ data, the last time the daily count of the number of Ethereum’s active addresses was this low was on 8th February. 

Ethereum Daily Active Address

Source: Artemis

Interestingly, due to the 25% spike in ETH’s value during the period under review, total transaction fees on the Ethereum network did not decline. It rose, even amid the dip in user demand. 

On 5th June, Ethereum’s transaction fees totaled $10 million, its highest since 13rd April. 

Ethereum Transaction Fees

Source: Artemis

A look at Ethereum’s DeFi and NFT verticals

While the chain has seen fewer users in the last month, its decentralized finance (DeFi) ecosystem has grown considerably. 

The total value of assets locked (TVL) across all DeFi protocols housed on Ethereum has grown by 25.38% in the past 30 days. This makes it the second blockchain, after Arbitrum [ARB], among the top 5 networks by TVL to record the most growth during that period.


 Read Ethereum (ETH) Price Prediction 2024-25


According to data from DefiLlama, Ethereum’s TVL was $66.33 billion at press time, a year-to-date high and its highest level since May 2022. 

Ethereum’s non-fungible tokens (NFTs) sector has not recorded the same success during the period under review. According to CryptoSlam, NFT sales volume on Ethereum has cratered by 56% in the past 30 days. 

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
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