Ethereum’s Ultra-Sound Money Status Diminishes Amid Supply Spike

Post-Dencun Upgrade: Ethereum Faces Inflation as Supply Increases
Ethereum’s Ultra-Sound Money Status Diminishes Amid Supply Spike
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Ethereum’s once-deflationary status is under scrutiny following the Dencun Upgrade, which aimed to lower transaction fees but inadvertently slowed ETH burn rates. Since mid-April, over 112,000 ETH has been added to the supply, leading to the longest inflationary period since the network's transition to Proof-of-Stake (PoS). The current inflation rate stands at 0.59% annually, raising concerns about Ethereum’s “ultra-sound money” narrative. Despite this, scaling activities on Layer 2 networks and anticipation for Ethereum ETFs continue to drive network engagement.

Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

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