Ethereum‘s (ETH) circulating supply has reached a significant milestone that reflects founder Vitalik Buterin’s vision by dropping below the proposed but community-rejected supply cap. Buterin’s proposal, known as EIP-960 (Ethereum Improvement Proposal 960), suggested a fixed supply limit of 120,024,432 ETH for Ethereum with the aim of creating scarcity to increase its value.
Introduced in 2018, EIP-960 proposed a fixed supply to ensure the sustainability of the economy, but the Ethereum community preferred a flexible supply policy that could adapt to the ever-changing needs of the network.
The reduction in Ethereum’s supply occurred as a result of the transition to the proof-of-stake (PoS) consensus mechanism and the integration of EIP-1559. This integration introduced a fee-burning mechanism that led to a decrease in supply, aligning with Buterin’s vision of scarcity.
Looking at market performance, Ethereum’s price is showing an upward trend by crossing multiple moving averages. The 50-day moving average (MA), considered a positive sign in market commentary, is above the 100 and 200-day MAs. Strong market interest supports the ongoing price movements.
With the current developments, Ethereum has reached a significant stage by surpassing the supply limit proposed by Buterin and showing a bullish market trend, thus demonstrating the alignment with the founding partner’s initial vision and its technological evolution. As Ethereum’s transition process continues, market participants are eager to observe the cryptocurrency‘s value and its impact on the broader crypto ecosystem.