Ethereum Token Issuance Plunges 95% After Proof of Stake Merge, Latest Data Reveals

• ETH token issuance is down to 0.2% following PoS merge
• Ethereum remains deflationary despite the token supply reduction
• Ether is currently trading at $1,327 amid a prolonged market correction

Ethereum's annual token supply is down to 0.2% following the merge, according to data from ultrasound.money. Before the transition, the margin stood at 3.79%

Equally, the daily token issuance is down to 772, from 12,500 during the PoW era. The token issuance metric measures the number of assets rewarded to the block validators.

The data shows that the new PoS network has since minted 4,581.26 ETH. Comparatively, we estimate the amount would be 88,736.7 under the proof-of-work consensus.

Ethereum migrated to the proof-of-stake consensus on September 15. The new model is touted as more energy efficient with 99.5% less power usage.

Ethereum remains deflationary in the post-merge era

Equally important are the inflationary and deflationary aspects of the second largest blockchain. Ethereum () is yet to attain a deflationary state fully, according to the report. A blockchain is said to be deflationary if the number of daily issued tokens is less than the amount burned.

Ethereum started its token burn mechanism via EIP-1559 in August last year. In the model, miners are rewarded part of the transaction fees, and the rest are destroyed. So far, over 2.6 million tokens have been destroyed since EIP was introduced.

ETH is facing bearish pressure amid adverse macro-economic factors

The reduction in token supply is yet to impact the price of ETH. The digital asset has slipped 3.47% in the past day to consolidate weekly losses at 12.41%. A hawkish Fed and BoE rate hikes are part of the reasons weighing ether down.