• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: BREAKING: Saylor's Strategy Misses S&P 500 Inclusion, Robinhood Takes Spotlight
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Saylor's Strategy Misses S&P 500 Inclusion, Robinhood Takes Spotlight
Ethereum inflation

Ethereum Sparks Inflation Worries As New Supply Surges In Just One Month

Scott Matherson
by Scott Matherson
1 year ago
·
Posted in Ethereum
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

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. 

Related Reading: Shiba Inu Lead Dev Responds To Calls For Better SHIB Prices

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. 

Ethereum ETH supply inflation

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 is 31.62% less than the previous year. Data from Ycharts shows that the gas fees for the cryptocurrency have declined from 13.49 gwei and were sitting at 8.8 gwei as of Sunday. 

With significantly lower gas fees, less ETH are burned unintentionally leading to a significant change in Ethereum’s supply dynamics and increasing the potential for inflation.

The fee-burning mechanism introduced by the Ethereum ecosystem in 2021 acts as a deflationary force in ETH’s supply. When Ethereum’s gas fees are low, ETH burns decrease leading to an increase in supply of ETH and a potential for inflation. 

Ethereum price chart from Tradingview.com

ETH price falls below $1,600 | Source: ETHUSD on Tradingview.com

Inflation Concerns And Future Implications

The broader crypto community has had high hopes for the Ethereum network since its Merge, taking it from a Proof of Work (PoW) to a Proof of Stake (PoS) mechanism last year. Under the PoS consensus, energy-intensive mining processes are eliminated and validators are selected to create blocks and validate transactions on the network, thus reducing the issuance of new ETH and effectively managing the supply. 

However, the recent developments in ETH’s supply have been less than positive and the potential for high inflation may have several implications for the Ethereum ecosystem. 

Related Reading: Former BlackRock Manager Says Prepare For $17.7 Trillion Inflow Into Bitcoin If This Happens

Over time, increased inflation may erode the purchasing power of ETH, drastically reducing the value of investors’ assets. Conflict over inflation rates and supply dynamics may also affect the crypto community, leading to unnecessary debates. There is also the possibility of interference from regulatory authorities to protect investors against potential risks and losses. 

Ethereum’s recent inflationary trend is a significant concern for its investors and the broader cryptocurrency market. The crypto community is still monitoring the progress and measures taken by ETH core developers to curb inflation risks. 

According to reports, Ethereum developers have remained indifferent to the changes in supply, categorizing the recent spike as “insignificant” when compared to the “grand scheme of things.”

Featured image from Cryptopolitan, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Scott Matherson

Scott Matherson

Follow

Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.

Full Profile

Related Posts

3 Fresh Wallets Buy $148.8M Ethereum – Silent Stacking

3 Fresh Wallets Buy $148.8M Ethereum – Signs Of Silent Stacking

17 hours ago
Institutional Players Add 218,750 Ethereum ($943M) In 2 Days: Big Money Bets On ETH

Institutional Players Add 218,750 Ethereum ($943M) In 2 Days: Big Money Bets On ETH

20 hours ago
Ethereum

Binance Ethereum Reserves Shrinks As Whale Outflows Persist – Here’s What They Are Up To

1 day ago
Ethereum

Ethereum Foundation Is Dumping ETH Again, Is This The Top?

2 days ago
Ethereum

Just 10 Wallets Control Majority Of Ethereum Supply: How Do Other ETH Tokens Compare?

2 days ago
ethereum_eth_ethusd_optimized

Ethereum Open Interest Holds Firm at $8.4B: Why Traders Aren’t Flinching Despite Price Pressure

2 days ago

Premium Sponsors

Press Releases

  • Cloud Mining

    From Holding to Profit: How XRP Earns $27,000 Daily from...

    30 minutes ago
  • minwer

    XRP Holders Can Earn $10,000 a Day Through COME...

    21 hours ago
  • BTC prices hit a two-week high, and holders flocked to GMO...

    21 hours ago
  • miner

    Cardano (ADA) Market Outlook: Long-term Potential Passive...

    21 hours ago
  • etnminer

    How to Play to Earn Crypto in 2025: Discover 6 Most...

    1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.