CryptoMediaClub
Sunday, October 26, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Analysis

Analyzing Ethereum’s inflationary and deflationary supply trends

13.09.2023
A A
0
125
VIEWS
ShareShare

Since Ethereum’s Merge on Sep. 15, 2022, the crypto industry has been abuzz with discussions about its supply dynamics. The Merge marked the network’s transition from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS), significantly altering its issuance rate. This transition, coupled with the implementation of EIP-1559 in August 2021, has led to oscillations in Ethereum’s supply between inflationary and deflationary states.

In the immediate aftermath of the Merge, Ethereum’s supply exhibited deflationary characteristics. This deflationary trend was primarily driven by the burning mechanism introduced by EIP-1559, which removes a portion of the transaction fees from circulation.

However, observing the supply over shorter time frames shows inflationary tendencies, with an inflation rate of +0.172% observed over a 7-day period.

ethereum supply inflation rate 7d
Graph showing the inflation rate of Ethereum’s supply over 7 days (Source: Ultrasound.Money)

Over a 30-day period, this inflation stands at +0.013%.

ethereum inflation rate 30d
Graph showing the inflation rate of Ethereum’s supply over 30 days (Source: Ultrasound.Money)

Yet, when zooming out to consider the broader picture since the Merge, Ethereum’s supply remains deflationary, decreasing by -0.251%.

ethereum inflation rate 1y
Graph showing the inflation rate of Ethereum’s supply over 363 days (Source: Ultrasound.Money)

The oscillation between inflationary and deflationary states has profound implications for Ethereum and its stakeholders.

A deflationary asset, by nature, tends to increase in value over time due to its increasing scarcity. This could enhance Ethereum’s value proposition as a store of value similar to Bitcoin, potentially attracting more investors. However, prolonged deflation could also lead to hoarding behaviors, potentially reducing Ethereum’s velocity and utility as a medium of exchange.

On the flip side, a consistently inflationary supply ensures that validators in the PoS system are rewarded for their efforts in securing the network. This continuous issuance of new ETH can provide economic security and sustainability for the Ethereum network.

However, there is a potential dilution of value for existing ETH holders and a possible decrease in the purchasing power of ETH. Continuous inflation could exert downward pressure on the price of ETH. If the rate of new ETH issuance outpaces demand, the price could decrease.

eth inflation rate since the merge
Graph showing the oscillation in Ethereum’s supply inflation rate from September 2022 to September 2023 (Source: Glassnode)

For the broader cryptocurrency market, Ethereum’s supply dynamics post-merge serve as a case study in balancing network security with economic incentives. Ethereum’s oscillations highlight the challenges and complexities of managing a cryptocurrency’s monetary policy in a decentralized ecosystem.

Further, they can make it hard for investors and users to predict its economic future, potentially leading to decreased demand for the volatile asset.

Ethereum’s supply dynamics since the Merge underscores the intricate interplay between technical upgrades, economic incentives, and market forces.

The post Analyzing Ethereum’s inflationary and deflationary supply trends appeared first on CryptoSlate.

Share10Tweet6ShareSharePin2

Related Posts

The 5 unbelievable crypto comeback stories that changed the world forever
Analysis

The 5 unbelievable crypto comeback stories that changed the world forever

25.10.2025
0

Crypto is nothing if not cyclical. Every cycle births icons, wrecks them, and sometimes resurrects them. What was once written...

Read moreDetails
Inflation to set up Bitcoin melt-up as rates to fall to 2.75% by next October

Inflation to set up Bitcoin melt-up as rates to fall to 2.75% by next October

24.10.2025
How retail altcoin traders lost $800 billion betting against Bitcoin

How retail altcoin traders lost $800 billion betting against Bitcoin

24.10.2025
Is Solana ready for institutions? $700M real world assets and no downtime

Is Solana ready for institutions? $700M real world assets and no downtime

24.10.2025
If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

24.10.2025
Load More
Next Post
Ripple Vows to Defend Against SEC Lawsuit, Significantly Impacting the Crypto Landscape

Ripple Vows to Defend Against SEC Lawsuit, Significantly Impacting the Crypto Landscape

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Crypto Market Needs Regulation to Attract Institutional Money, Says Kevin O’Leary

Crypto Market Needs Regulation to Attract Institutional Money, Says Kevin O’Leary

3 years ago
What are stealth addresses, and how do they work?

What are stealth addresses, and how do they work?

2 years ago
Jack Dorsey Creates Self-Custody BTC Wallet

Jack Dorsey Creates Self-Custody BTC Wallet

2 years ago

Polygon Labs Pitches Plan to Streamline Celo’s Move to Ethereum Layer 2 Using CDK

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Bitcoin Price Prediction: Kiyosaki Says Path to Financial Freedom Paved With Bitcoin – Is He Right?

72-Hour Countdown: Snorter Bot Token Must Sell Out Before Claim Goes Live

Fed Rate Cut Odds Jump to 97% as CPI Comes in Cool at 3% – Bullish for BTC?

World Still Not Off the Hook: Thai SEC Raids Iris Scanning Hub Over WLD Token Breach

Bitcoin Set to Explode to $180K as Global Money Floods In: VanEck CEO

Snorter Bot Token Burns Half of Supply in Boost For Presale Buyers, 3 Days Before Launch

Trending

XRP Price Prediction: Outpacing Other Altcoins XRP Closes Week Up 11.4% – Momentum Building?
All news

XRP Price Prediction: Outpacing Other Altcoins XRP Closes Week Up 11.4% – Momentum Building?

26.10.2025
0

XRP (XRP/USD) ended the week with an impressive 11.4% gain, outperforming most major altcoins and reigniting bullish...

Coinbase CEO Wants Every Startup to Launch, Fund, and IPO Onchain

Coinbase CEO Wants Every Startup to Launch, Fund, and IPO Onchain

26.10.2025
Coinbase’s x402 AI Payments Protocol Sees 10,000% Surge in Activity

Coinbase’s x402 AI Payments Protocol Sees 10,000% Surge in Activity

26.10.2025
Bitcoin Price Prediction: Kiyosaki Says Path to Financial Freedom Paved With Bitcoin – Is He Right?

Bitcoin Price Prediction: Kiyosaki Says Path to Financial Freedom Paved With Bitcoin – Is He Right?

26.10.2025
72-Hour Countdown: Snorter Bot Token Must Sell Out Before Claim Goes Live

72-Hour Countdown: Snorter Bot Token Must Sell Out Before Claim Goes Live

26.10.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz