Arthur Hayes tells his 298,600 Twitter followers that Ethereum’s net issuance is the only chart “that matters” after the leading smart contract platform successfully transitioned to a proof-of-stake protocol.
“Show me that drop in ETH issuance every day, and I will show you a BULL F****NG MARKET!”
Source: Arthur Hayes/Twitter
Issuance is the process of creating ETH tokens that previously did not exist to reward stakers who keep the Ethereum network secure and running.
In a recent post, the Ethereum community illustrated the dramatic change in the amount of ETH issuance after the merge.
“Mining rewards ~13,000 ETH/day pre-merge.
Staking rewards ~1,600 ETH/day pre-merge.
After the merge, only the ~1,600 ETH per day will remain, dropping total new ETH issuance by ~90%.
The burn: at an average gas price of at least 16 gwei, at least 1,600 ETH is burned every day, which effectively brings net ETH inflation to zero or less post-merge.”
Hayes previously said that sees Ethereum trading at $3,000 at the end of the year as he believes the amount of circulating ETH after the merge will not be able to meet the demand.
“If there’s a certain amount of demand and the supply isn’t there to meet it, the price goes up, and it doesn’t matter if the cost of dollars is 4% or two or 25%.”
At time of writing, Ethereum is trading for $1,455, flat on the day.