When it comes to Ethereum, there are two main types of supply: circulating supply and total supply. Circulating supply is the amount of ETH that is currently available to trade, while total supply is the amount of ETH that has been mined since the Ethereum network launched.
As of right now, the circulating supply of ETH is just over 111 million, while the total supply is just over 115 million. So, does Ethereum have a limited supply?
The answer is technically yes, but there is a small catch. You see, every year, a certain amount of ETH is created through a process called “mining.
” This new ETH enters the circulating supply, but it doesn’t increase the total supply.
So, while the total supply of ETH will never exceed 115 million, the circulating supply will continue to grow as more ETH is mined each year. Currently, mining rewards are set at 5 ETH per block.
NOTE: WARNING: Ethereum does not have a limited supply. The total amount of Ether that can be issued is unlimited and is determined by the consensus of the Ethereum network. This means that the total supply of Ether is not capped and will continue to increase as more users join the network and use Ether for transactions or other activities. Therefore, be aware that your investment in Ethereum may become worthless if the value of Ether decreases due to an influx of new users.
This means that, over time, the amount of ETH in circulation will slowly increase.
This may not seem like a big deal, but it actually has some pretty significant implications. For one thing, it means that Ethereum won’t be subject to the same kinds of inflationary pressures as other cryptocurrencies (like Bitcoin).
It also means that Ethereum’s price could potentially rise higher than it would if there was a fixed supply. That’s because as demand for ETH increases (due to things like increased adoption and use cases), there won’t be as many new coins being introduced into circulation to meet that demand.
This could lead to price increases.
So, does Ethereum have a limited supply? Yes, but that doesn’t mean its price can’t go up over time. In fact, its increasing circulating supply could actually help drive up its price in the long run!.
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