Ethereum

bullish

EigenLayer

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/ethereum-supply-and-inflation-increase-2/" data-wpel-link="internal">Ethereum Supply and Inflation Increase</a> 
The transition to PoS caused a major bullish story for ETH due to the reduced supply, but the trend was not favorable. Although we entered a bullish trend, ETH’s price faced changes on the supply side and remained far from its old levels when BTC was at $60,000 despite ETH approval. So, is the supply increasing to a worrying degree? 
<h2 style="text-align: justify" id="ethereum-supply-and-inflation">Ethereum Supply and Inflation</h2> 
ETH supply is unlimited. Unlike many cryptocurrencies that have a cap like BTC’s 21 million, there are mechanisms that determine the annual token inflation. If token demand exceeds annual inflation and <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">long-term investors</a> are sufficient, the price of an <a href="https://en.coin-turk.com/final-countdown-for-glmr-token-unlock-event/" data-wpel-link="internal">altcoin</a> with unlimited supply can certainly rise. 
With the transition to PoS, the ETH supply did not become limited, but miner rewards were eliminated, and more reasonable staker rewards were introduced. This led to the burning of a portion of the income from transaction fees, causing the supply to shrink when network activity was strong and transaction fees were high. Thus, we began to see negative inflation. 
Now, this has changed. According to Ultrasoundmoney <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener" data-wpel-link="exclude">data</a>, ETH supply has risen to 120.28 million ETH. In the last 30 days, 77,091 ETH entered circulation. The current annual inflation has returned to positive levels, showing an inflationary trend at 0.583%. 
<img loading="lazy" loading="lazy" decoding="async" class="wp-image-380260 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/08/ETH-Arz.png" alt="" width="969" height="502"> 
The 30-day burn was 19,438 ETH, so when we subtract this from the above issuance figure, the net excess in circulation was 57,653 ETH. Although the burn mechanism introduced with the London Hard Fork created a deflationary environment for a while, the update that reduced transaction fees and made Layer2 solutions about 90% cheaper changed things. 
<h2 style="text-align: justify" id="what-will-happen-to-ethereum-eth">What Will Happen to Ethereum (ETH)?</h2> 
The inflationary environment seems likely to continue for ETH. Especially the increasing interest in restaking platforms like EigenLayer accelerates the growth rate of supply with rewards. In just one week, EigenLayer’s total locked value increased by 11%. This and the growing interest in other platforms indicate that the contribution to the inflationary environment will continue. 
The biggest advantage here would come from the rapid strengthening of demand through the ETH ETF channel. ETH issuers cannot stake and pass this income to their customers, so they do not contribute to the inflationary environment. Still, even in the worst-case scenario with 1% to 5% inflation, the sustainability of ETH price should not be massively negatively affected. Many cryptocurrencies have grown for years despite double-digit inflation, and considering ETF support for ETH, we should not see major negative results in the medium term with increasing demand in secondary markets. 
Of course, stories that deflation supports the price and that there could be a long-term supply shortage have evaporated in light of all the above details. This can be considered a loss of profit. 
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Ethereum Supply and Inflation Increase

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