After the Ethereum blockchain (ETH) switched to the PoS consensus method, the virtual currency’s inflation rate dropped by 99.6%.
According to Ultra Sound Money Services, the current inflation rate for ETH is 0.014% per year. If the network operated under the PoW consensus method, the rate would be 3.58%.
Inflation rates for ETH on PoS (blue line), Bitcoin (yellow), and ETH on PoW (white)
Since the release of the Merge update on September 15, which marked the start of the validator for the Ethereum blockchain, only 4, 765 ETH have been created on the network. Had the digital asset been further mined, the number of coins issued would have been 1.25 million.
Furthermore, thanks to the Ethereum clearing mechanism launched in August 2021, the stock of altcoins has decreased by 0.01%. As a result, ETH is a deflated asset. The Ultra Sound Money Portal estimates that members of the cryptocurrency community consumed up to 639, 000 ETH throughout the year.
Obviously, a decrease in the number of coins in the profession should cause an increase in the value of Ethereum, but so far that has not happened. ETH is down 25% in value compared to September 15, but with the market showing an uptrend on November 22, the virtual currency’s price could see a modest uptick.
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