Ethereum

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 <p class="is-style-lead">Ethereum’s supply <a rel="noopener noreferrer nofollow" title="turns" href="https://thebittimes.com/tag/turns.html">turns</a> <a rel="noopener noreferrer nofollow" title="deflationary" href="https://thebittimes.com/tag/deflationary.html">deflationary</a> amid a decrease in <a rel="noopener noreferrer nofollow" title="validator" href="https://thebittimes.com/tag/validator.html">validator</a> participation and declining NFT and defi <a rel="noopener noreferrer nofollow" title="transactions" href="https://thebittimes.com/tag/transactions.html">transactions</a>.</p>
 <p>The recent dynamics of Ethereum’s blockchain network signal a significant shift towards deflation, according to data from Glassnode. This is driven by a combination of reduced validator participation and increased network activity. A notable increase in validators exiting the Ethereum staking pool since October has contributed to a slowdown in the growth rate of ETH issuance. This trend correlates with the broader bullish sentiment across digital asset markets.&nbsp;</p>
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    <p lang="en" dir="ltr">The growth rate of the #Ethereum validator set has slowed in recent weeks as an increasing number of validators voluntarily exit, slowing the rate of ETH issuance. <br><br>Alongside increasing ETH burnt via EIP1559 due to growing network activity, the ETH supply has turned… pic.twitter.com/xMrQRe7opO</p>— glassnode (@glassnode) November 28, 2023
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 <p>The decreased validator participation leads to reduced ETH issuance, which, when combined with heightened network activity, results in increased ETH burn via EIP1559​​. Concurrently, a decline in NFT and defi transactions has been observed, with decreases of 3% and 57%, respectively, over the past four months.&nbsp;</p>
 <p>In contrast, token transfers and stablecoins have seen a surge, with gas usage for tokens rising by 8.2% and stablecoin gas usage increasing by 19%. This suggests a shift towards longer-tail assets, reflecting growing market confidence​​.</p>
 <p>Post the London hardfork, Ethereum transitioned from a net inflationary state towards equilibrium and then <a rel="noopener noreferrer nofollow" title="deflation" href="https://thebittimes.com/tag/deflation.html">deflation</a>. Recently, the combination of declining issuance rates and increased volume of ETH burnt has turned the aggregate ETH supply <a rel="noopener noreferrer nofollow" title="deflationary" href="https://thebittimes.com/tag/deflationary.html">deflationary</a> once more. These developments underscore Ethereum’s responsiveness to market activity and adoption trends​​.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/ethereum-turns-deflationary-as-validators-exit-and-defi-transactions-drop-57-tbt71974.html">https://thebittimes.com/ethereum-turns-deflationary-as-validators-exit-and-defi-transactions-drop-57-tbt71974.html</a></p>

Ethereum turns deflationary as validators exit and defi transactions drop 57%

TheBitTimes

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