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Analyzing Ethereum’s inflationary and deflationary supply trends Analyzing Ethereum’s inflationary and deflationary supply trends

Analyzing Ethereum’s inflationary and deflationary supply trends

with insights from Glassnode

Unpredictability reigns as Ethereum continues to dance between inflation and deflation after the Merge.

Analyzing Ethereum’s inflationary and deflationary supply trends

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Since Ethereum's monumental transition from Proof-of-Work to Proof-of-Stake, its supply dynamics have been nothing short of a roller coaster ride. Oscillating between inflationary and deflationary states, these shifts have profound implications for Ethereum and its stakeholders. A deflationary asset, by nature, can increase in value over time due to scarcity... But what could prolonged deflation mean for Ethereum's velocity and utility? And how does a consistently inflationary supply affect the network's economic security and sustainability? Dive into the intricate interplay of technical upgrades, economic incentives, and market forces...