Ethereum’s Annualized Inflation Rate Drops to Record Low of 0.00002%
• Ethereum (ETH) has returned to a deflationary state, with its annualized inflation rate dropping to 0.00002%.
• The value of transaction settlements on the Ethereum network is significantly higher than that on the Bitcoin network.
• The global cryptocurrency market capitalization has risen by 21% in the past 16 days.
Ethereum (ETH) has returned to a deflationary state for the first time since December 2022, with data from ultra sound money revealing that the altcoin’s annualized inflation rate dropped to 0.00002%. This means that the rate of new ETH being added to the total supply is decreasing and that more ETH tokens have been burned than minted since the year started.
The value of transaction settlements on the Ethereum network has also skyrocketed, with Etherscan data showing that the count of daily ETH burned since 1 January has climbed by 32%. Ethereum is currently settling over $21 billion a day in value, significantly ahead of Bitcoin’s $2.6 billion daily transaction settlements.
The sharp surge in ETH’s value mirrors the growth in the general cryptocurrency market since the year started following a tumultuous close to the 2022 trading year. According to data from CoinGecko, global cryptocurrency market capitalization has risen by 21% in the past 16 days and ETH’s value has risen by 31%.
The shift to a deflationary state, combined with the increased value of transaction settlements, indicates that Ethereum is positioned to be a leader in the cryptocurrency industry. Investors are increasingly turning towards ETH as a safe and secure store of value and this is reflected in the altcoin’s significant price surge.
It is clear that Ethereum has made great strides since the beginning of the year and it is likely that this trend will continue in the months to come. With Ethereum’s value continuing to rise and its annualized inflation rate dropping to a record low, the future of the leading smart contract blockchain is looking brighter than ever.