Good in the negative – The Merge is producing its results, and it’s quite positive. The offer ofEthereum (ETH) has become deflationary. This major event is unfortunately not reflected in the price of cryptocurrency, due to the current context.
55 days after The Merge, Ethereum supply becomes deflationary. According to data from ultrasoung.money, Ethereum’s deflation rate currently stands at 0.003% per year.
For comparison, the supply of Bitcoin is currently inflationary, with an inflation rate of 1.716% over a year.
Without this switch from proof-of-work to proof-of-stake, the total supply of Ethereum would currently be inflationary, increasing by more than 650,000 ETH, with an inflation rate of nearly 3.6% per year.
However, the crisis Binance – FTX has pushed major events, such as this reduction in the total supply of Ethereum, into the background. The cryptocurrency is currently trading around the $1,100and records a daily loss of just over 17%.
Some observers have pointed to the dangers associated with The Merge, citing the risks of centralization or censorship. A deflationary Ethereum is a reminder of the positive results expected from this major network update.
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