Ethereum Improvement Proposal 1559 was implemented 613 days ago to burn a portion of the fees generated through transactions. However, it did not affect the blockchain's total supply. Since then, the total supply of ether has increased by $6.2 billion or 3.23 million coins. The implementation of the more eco-friendly proof-of-stake consensus mechanism, known as "The Merge," caused the ether supply to decrease in earnest. The Merge reduced the supply of ether by 82,924 coins (over $159 million) since it took place 208 days ago. Without The Merge, the ether supply would have increased by $4.5 billion or 2.33 million coins over the last 208 days.
The burning of ETH on Ethereum is successful in reducing inflation, that reaches $5.5 billion burned annually. The upcoming Shapella upgrade is expected to further improve the network ahead of future developments, and the community is optimistic about Ethereum's future.
The implementation of The Merge caused a reduction in the rewards given to those running the network, which, together with EIP-1559's burning mechanism, led to a decrease in the supply of ether. The supply of ether dropped by 0.121% per year since The Merge took place.
The Shapella upgrade, consisting of Ethereum's Shanghai and Capella upgrades, is set to occur on April 12. The upgrade will enable the withdrawal of staked ether in a phased manner, allowing staking pools to control the release of rewards. Coinbase announced that it would start processing unstaking requests 24 hours after the upgrade's completion. However, the protocol might take weeks or even months to process all unstaking requests due to high demand. Lido Finance anticipates that stETH withdrawals won't be initiated on the mainnet until mid-May.
Withdrawal processing delays are expected due to technical on-chain constraints. Only 16 partial withdrawal requests, consisting solely of staking rewards, can be processed every 12 seconds. As a result, the queue for withdrawals could become quite long once Shapella is live. Full withdrawals, in which a validator entirely exits the Ethereum blockchain, might also take considerable time.
The reduction in ether supply due to Ethereum's burning of ETH could have an impact on forex markets. As the supply of ether decreases, its value may increase, leading to a rise in demand for the cryptocurrency in forex trading. However, any sudden changes in the market may also result in significant losses for traders. It is essential to keep a close eye on the market trends and remain vigilant while trading forex with Ethereum. Traders should also be aware of the potential delays in ether withdrawal processing and adjust their trading strategies accordingly.