ETH is the world's second-largest digital currency by market capitalization, and supply from exchanges has continued to decline in the past six months after the merger. In September 2022, the Etherum Internet launched a major update, moving from the work Unit Certificate (PoW) to the risk proof (POS) Internet in an important event called merger.

According to the data information on the chain of Santiment interworking among cryptographic analysis enterprises, the total number of ETH available to the exchange has dropped again. Since the merger, the number of ETH on the exchange has fallen by 37 per cent. Falling supply on exchanges is called a sign of rising because of lower ETH that can be bought or sold.

In September before the merger, the exchange had 19.12 million ETH valued at $31.3 billion. In the second week of February, that number fell to 13.36 million ETH, worth $19.7 billion.

A large portion of ETH's supply is being transferred to its own escrow, and many traders are betting that Shanghai will be updated. Shanghai, which is about to upgrade and update the Ethernet, is scheduled to start in March. Shanghai hard fork will incorporate a large number of Internet-enhanced improvements and allow depositors and certificators to withdraw their shareholdings from the Beacon chain.

At this stage, 16 million euros, accounting for about 14% of the supply, is bet on the whole industry chain of Beacon, which is about US $25 billion at current prices-- this is a very large amount. After entering the hard fork in Shanghai, it will gradually form liquidity.

In addition to the continuous decline in the supply of ETH held by the Stock Exchange, the overall market supply of ETH will also decline since it upgraded to deflation in London, England. The deflation entity model comes from the burning fee system introduced according to the Ethernet improvement proposal (EIP)-1559.

Since the London update in August 2021, a total of 2.9 million ETH have been damaged, which could be worth $4.5 billion at today's value.