What is Ether (ETH)?
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain. It is not merely a tradable digital asset but also plays a central role in Ethereum's decentralized applications (DApps) and smart contract ecosystem. ETH is primarily used to pay transaction fees on the Ethereum network, known as "Gas fees," and to pay for computational services on the network, hence it is often referred to as the "crypto fuel" of the Ethereum network.
Ethereum itself is a decentralized, open-source, and public blockchain platform with smart contract functionality. It was conceived by programmer Vitalik Buterin between 2013 and 2014 and officially launched in 2015. Ethereum aims to provide a powerful platform for global developers to create and run smart contracts and various decentralized applications, thereby supporting the development of innovative fields such as decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs). Ethereum is widely considered the "second-generation blockchain platform" after Bitcoin, significantly expanding the scope of blockchain technology applications.
In terms of technological evolution, the Ethereum network successfully transitioned from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) mechanism in September 2022 through a major upgrade called "The Merge." This milestone event marked Ethereum's official entry into its 2.0 era, significantly reducing the network's energy consumption and laying the groundwork for future scalability upgrades.
As of the publication date on September 5, 2026, Ether is the second-largest cryptocurrency by market capitalization globally, trailing only Bitcoin, and its market performance and technological developments continue to attract global attention. You can view real-time prices and market dynamics of Ether on professional market platforms such as Svmuu.
What is the supply of Ether?
Unlike Bitcoin's fixed total supply of 21 million coins, Ether does not have a preset fixed maximum supply cap; its supply is theoretically dynamic. Ethereum employs a "minimum necessary issuance" model, aiming to ensure network security while controlling the issuance of new coins as much as possible.
Evolution of Issuance Mechanism
- Pre-Merge (PoW Era): Before Ethereum transitioned to the PoS mechanism, new Ether was primarily generated through mining. At that time, each block rewarded 2 ETH, plus uncle block rewards, resulting in approximately 13,000 ETH issued daily, and about 4.5 million ETH issued annually.
- At The Merge (September 2022): When "The Merge" was completed, the total supply of Ether was approximately 120,520,000 ETH.
- Post-Merge (PoS Era): After transitioning to the Proof-of-Stake mechanism, the issuance on the execution layer became zero. New Ether is primarily issued to PoS validators, and its issuance volume depends on the total amount of ETH staked in the network. Based on a staking volume of approximately 14 million ETH, about 1,700 ETH are issued daily post-Merge.
After "The Merge," the total new issuance of Ether decreased by approximately 88%, with an annualized issuance of about 620,500 ETH and an annualized inflation rate of approximately 0.52% (based on a total supply of about 119.3 million at that time).
Impact of EIP-1559 Proposal
The EIP-1559 proposal, implemented in August 2021, introduced another critical dynamic to Ether's supply: the transaction fee burn mechanism. This proposal introduced the concept of a Base Fee, which automatically adjusts based on network demand and is directly burned, removing it from circulation. This means that during periods of high network transaction demand, the amount of Ether burned may exceed the amount of new Ether issued, potentially leading to deflationary periods for Ether.
Current Supply and Market Views
Historical data as of March 2025 shows that the total supply of Ethereum was approximately 120 million to 122 million ETH, with a circulating supply of about 120 million coins at that time. Due to EIP-1559's burn mechanism and the lower issuance under the PoS mechanism, many proponents believe that Ethereum could become deflationary in the future, and its inflation rate might even fall below Bitcoin's. However, critics also express concerns about Ethereum's lack of a fixed total supply cap, suggesting it might affect its scarcity as a long-term store of value asset.
Ether Market Data (As of September 5, 2026)
- Real-time Price: Approximately $2,457.2
- 24-hour Trading Volume: Approximately $18.7 billion
- Market Cap: Approximately $299.83 billion
- All-time High: Approximately $4,955.11 (This data reached $4,946.05 on August 24, 2025)
