Etherum’s ETH supply has reportedly soared to the highest levels that it has achieved in the last 10 months. A rising supply when demand...
ETH’s net issuance has been rising after bouncing from its 3-month low. The net issuance surged as high as 0.50%, which is not only the highest recorded during that period but also higher than Bitcoin.supply has reportedly soared to the highest levels that it has achieved in the last 10 months. A rising supply when demand remains constant or lower could lead to price dilution.
Ether's supply has been rising for the first time since December '22. The low transaction fees and increasing daily issuance contribute to this inflationary trend. However, with a net issuance of 0.44% annually, ETH's inflation is still well below Bitcoin's.So, does this net issuance surge reflect the price action? Well, that may not necessarily be the case because one has to also account for ETH burns and demand.
However, if we cross-reference the issuance surge and the price action during the same period, we see that the price has been declining. We decided to explore ETH’s supply and its 2-year projection and found something interesting. Roughly 8 million ETH were in user accounts at press time. Moreover, about 27.7 million ETH were held by validators and 32.2 million were in smart contracts.The analysis suggested that supply peaked sometime in the second half of September. It also projected that there will be a supply decrease in 2024.
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