ETH supply inflation returnsOther key factors weighing down Ether’s performance are its declining burn rate and rising supply. With transaction fees declining, the daily ETH burn rate has plunged to all-time lows, resulting in an inflationary trend. According to data from Ultrasound.money, the projected ETH burn rate has declined to 25,000 ETH/year, and its supply growth has risen to an annual rate of 0.76%, bringing the issuance rate to 945,000 ETH per year.ETH burn rate.Source: Ultrasound.moneyAs a result, Ethereum’s supply has steadily increased since April 2024, reversing the deflationary period ushered in by the switch to proof-of-stake (the Merge) in September 2022.
Ethereum also implemented the London hard fork in August 2021, which introduced a mechanism that burns a portion of transaction fees. Related: Ethereum down 57% from its all-time high, but it’s still worth more than ToyotaWhen network activity is low, the amount of ETH burned is lower than newly issued ETH, making the asset inflationary.
Ethereum supply reclaims pre-Merge levels.Source: Ultrasound.moneyThe Merge eliminated Ethereum’s mining-based issuance, which previously had a high supply inflation rate.
or
Share This Story
Article Details
Author / Journalist: Cointelegraph by Nancy Lubale
The story "ETH price to $1.2K? Ethereum's PoS 'deflation' ends with fees at all-time lows" has 660 words across 38 sentences, which will take approximately 3 - 6 minutes for the average person to read.
Which news outlet covered this story?
The story "ETH price to $1.2K? Ethereum's PoS 'deflation' ends with fees at all-time lows" was covered 17 hours ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 38 news stories per day.
It's most recent story was published 9 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
