The Ethereum supply has experienced an uncharacteristic uptick in the space of a month, raising concerns about the cryptocurrency’s inflation risk among ETH investors and community members.
Ethereum Inflation Crisis
Since the beginning of 2023, Ethereum, the world’s second-largest cryptocurrency has experienced fluctuating inflation rates in ETH’s money supply. According to the Ultrasound Money website, there has been a significant surge in the ETH supply in the last 30 days.
The global ETH supply has skyrocketed by almost 30,000 ETH, raising worries about the potential for inflation in the Ethereum ecosystem and leaving the crypto community speculating about the rationale behind this unexpected spike and how it would impact the ecosystem.
Almost 30,000 ETH flows into circulation | Source: Ultrasound Money
The abrupt climb in ETH global circulation is reportedly attributed to a drop in user activities and transactions on the Ethereum network. Decentralized finance (DeFi) activities in ETH’s ecosystem have declined significantly and trades on NFT assets and meme coins have also failed to pick up, leading to a massive drop in ETH gas fees this month.
Last month, ETH transaction fees declined toward 2022 lows, unveiling a considerable decrease in on-chain activities in the Ethereum ecosystem. The average ETH gas price presently…
