There are approximately 120.4 million Ethereum (ETH) coins in circulation as of now. Unlike Bitcoin, Ethereum does not have a fixed maximum supply, meaning there’s no hard cap on the total number of ETH that can exist. Instead, Ethereum’s supply is dynamic—shaped by issuance through staking rewards and reduction through token burns via EIP-1559. Since the landmark Merge in September 2022, which transitioned Ethereum from Proof-of-Work to Proof-of-Stake, the network has experienced periods of deflation, where more ETH is burned than created. While recent trends show a slight return to inflation, the overall supply remains below pre-Merge levels.
Understanding Ethereum’s supply mechanics is essential for investors, developers, and users alike, as it directly impacts scarcity, network security, and long-term value potential.
Understanding Ethereum’s Supply Model
Ethereum’s tokenomics are fundamentally different from those of Bitcoin. While Bitcoin enforces a strict 21 million coin limit, Ethereum embraces a flexible monetary policy designed to balance decentralization, security, and sustainability.
👉 Discover how Ethereum's unique supply model could shape its future value.
The absence of a max supply doesn’t imply runaway inflation. In fact, Ethereum’s issuance rate has dropped significantly since The Merge. Before the upgrade, miners received around 13,000 ETH per day in block rewards. Post-Merge, validators earn only about 1,600 ETH daily—representing an 87.7% reduction in new supply entering circulation.
This dramatic decrease in issuance, combined with consistent token burning, has allowed Ethereum to enter deflationary phases when transaction demand is high.
The Role of EIP-1559 in Supply Dynamics
A key innovation driving Ethereum’s supply contraction is EIP-1559, implemented in August 2021. This upgrade transformed how transaction fees work on the network.
Under EIP-1559:
- A base fee is automatically burned with every transaction.
- Users can add optional priority fees (tips) to validators for faster processing.
As a result, the more active the network, the more ETH gets permanently removed from circulation. During peak usage—such as NFT mints or DeFi trading surges—thousands of ETH can be burned in a single day.
This mechanism creates a powerful feedback loop: increased adoption → higher transaction volume → more ETH burned → reduced circulating supply → potential upward pressure on price.
Ethereum’s Smallest Unit: Wei and Denominations
Each ETH is divisible into extremely small units, facilitating microtransactions and precise smart contract operations. The smallest unit is called wei, named after cryptographer Wei Dai.
Here are the primary denominations of ETH:
- Wei: 1
- Kwei (Babbage): 1,000 wei
- Mwei (Lovelace): 1,000,000 wei
- Gwei (Shannon): 1,000,000,000 wei
- Twei (Szabo): 1,000,000,000,000 wei
- Pwei (Finney): 1,000,000,000,000,000 wei
- Ether: 1,000,000,000,000,000,000 wei (1 ETH)
Gwei is commonly used when discussing gas prices—for example, “gas is 25 gwei” means each unit of computational effort costs 25 billion wei.
The Impact of The Merge on Ethereum Supply
The Merge marked a pivotal moment in Ethereum’s history—not just environmentally but economically. By shifting from energy-intensive mining to staking-based validation, Ethereum drastically reduced its issuance rate.
Before The Merge:
- Daily issuance: ~13,000 ETH
- Consensus mechanism: Proof-of-Work
- High energy consumption
After The Merge:
- Daily issuance: ~1,600 ETH
- Consensus mechanism: Proof-of-Stake
- Significant drop in new supply
This shift laid the foundation for what some call the "Ethereum triple halving"—a metaphorical concept highlighting three deflationary pressures:
- Drastic reduction in block rewards post-Merge
- Continuous burning of ETH via EIP-1559
- Locking up of staked ETH (over 55 million currently)
Together, these forces have made Ethereum one of the most economically innovative blockchains today.
👉 See how staking and burning are reshaping Ethereum's economy.
Current Trends and Future Outlook
While Ethereum briefly entered a deflationary phase between early 2023 and mid-2024, recent data suggests a slight return to inflation due to increased issuance and lower burn rates. However, the total supply remains below its September 2022 peak.
Projections based on current trends estimate:
- ~809,000 ETH issued annually through staking rewards
- ~830,000 ETH burned annually via EIP-1559
- Net change: ~21,000 ETH reduction per year
These figures fluctuate depending on network activity. During bull markets or major ecosystem events (like major token launches), burn rates often surpass issuance.
For real-time tracking of Ethereum’s supply dynamics—including live burn rates and issuance trends—platforms like ultrasound.money offer transparent dashboards updated continuously.
Frequently Asked Questions (FAQs)
How many Ethereum are there?
As of now, there are approximately 120.4 million ETH in circulation. This number changes daily due to new ETH being issued to validators and existing ETH being burned through transaction fees.
Is there a max supply of Ethereum?
No. Ethereum does not have a maximum supply limit. However, issuance is carefully controlled through protocol rules and counterbalanced by regular token burns under EIP-1559.
How much Ethereum is left to mine?
Ethereum no longer uses mining after transitioning to Proof-of-Stake in 2022. All new ETH is issued through staking rewards rather than mining. Since there's no supply cap, the protocol will continue issuing ETH as long as staking exists.
How many Ethereum are destroyed each year?
Based on recent trends, around 830,000 ETH are burned annually through the EIP-1559 mechanism. The actual amount depends on network usage—higher activity leads to more burns.
Who holds the most Ethereum?
The largest holder of ETH is the Beacon Deposit Contract, which holds over 55.3 million ETH—funds staked by validators securing the network. No single individual or entity owns this wallet; it's a smart contract managed by the protocol.
Can Ethereum become deflationary?
Yes—and it already has been during periods of high usage. When the amount of ETH burned exceeds new issuance from staking rewards, the total supply decreases. Whether this trend continues depends on sustained demand for transactions and dApp interactions.
Final Thoughts
Ethereum’s supply model represents a bold departure from traditional cryptocurrency designs. Rather than relying solely on scarcity through a hard cap, it uses a dynamic system that responds to real-world usage.
With strong fundamentals—dominance in DeFi, NFTs, stablecoins, and smart contracts—and mechanisms like EIP-1559 burn and staking rewards shaping its economy, Ethereum remains at the forefront of blockchain innovation.
As adoption grows and layer-2 scaling solutions increase efficiency, Ethereum’s economic model may further evolve toward sustained deflation—potentially enhancing its appeal as both a digital asset and a foundational platform for decentralized applications.
👉 Stay ahead with insights into Ethereum's evolving economy and market trends.