Financial Market Examiner
Midas Crypto Vault
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
Financial Market Examiner
No Result
View All Result
Home Crypto News

Ethereum Inflation Dropping 260 ETH Added In Five Months

Admin by Admin
January 16, 2023
in Crypto News
0
Ethereum Inflation Dropping 260 ETH Added In Five Months
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Five months after ethereum transited to a proof-of-stake consensus system via the Merge, the network’s inflation has drastically dropped.

A snapshot shared on Twitter reveals that the network has distributed 260 ETH, worth approximately $360,000, at spot rates. 

This contraction in inflation is several folds lower than what ethereum would have if it was using proof-of-work to process transactions and secure its infrastructure using miners. In the previous dispensation, the amount minted by ethereum for miners would have stood at 1,439,450 ETH, or $2.2 billion.

The development is massive for ethereum, especially ETH holders. A big concern over the years has been the rapid pace of ETH inflation. 

Since ethereum, unlike bitcoin, has no cap on supply and is thus inflationary, holders and investors worried that this could devalue their assets over time. Since launching, ETH’s total supply has risen from 100 million to more than 122 million since mid-January 2023.

However, following the shift from a proof-of-work system, criticized for being unsustainable and limiting to scalability, ethereum’s inflation has been dropping.

Inflation would have been higher was it not for the Constantinople upgrade. Here, miner rewards were dropped from 3 to 2 ETH in what was called Thirdening. In the pre-Merge era, ethereum added 13,000 ETH every day. As dictated from the protocol level, 2 ETH were added to circulation every 13 seconds.

The drop in ETH inflation over the last few months came amid unfavorable conditions in 2022. Throughout 2022, on-chain activities rapidly contracted as asset valuation plunged. For context, ETH prices more than halved after soaring to over $4,600 in early November 2021. It fell to register multi-month lows in 2021, dropping to as low as $1,100. This severely impacted activity as DeFi and NFT users scampered to safety. 

Apart from dropping inflation, there is over $25b worth of ETH locked in the official Beacon Chain deposit address, per on-chain data. As ethereum developers initiated the migration to proof-of-stake via the Merge, users locked their 32 ETH to operate validator nodes and earn staking rewards. The over $25 billion ETH could be unlocked in Q1 2023. Before then, ETH inflation would be lower and expected to shrink in the months ahead.

Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share
Institutional Trading Concept Institutional Trading Concept Institutional Trading Concept
ADVERTISEMENT
Previous Post

Wormhole Exploiters Transferrd $2.9m USDC To A New Ethereum

Next Post

Bitcoin Price Moving To $65K

Admin

Admin

Next Post
Irish Central Bank Head Advocated For A Ban On crypto Related Ad

Bitcoin Price Moving To $65K

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • 99 Subscribers
  • Trending
  • Comments
  • Latest
AUD USD pair

Forex: AUD/USD Point To More Downside For The Aussie

October 20, 2022
yen and dollar

FOREX-Yen Flirts With Intervention Level As Dollar See Gains

October 11, 2022
Virtual stadium in the metaverse

Why Virtual Stadium Can Be the Next Big Thing in the Metaverse

January 26, 2023
USDD Depegs

USDD Stablecoin Depegs To $0.96, Tron (TRX) Dumped

December 12, 2022
What is Initial Coin Offering?

Initial Coin Offering (ICO)

0
What is staking?

Staking

0
What is Defi?

Defi (Decentralized Finance)

0
Differences between Axie Infinity and Decentraland

Axie Infinity and Decentraland: Features and Differences

0
Bahrain Real Estate Company Starts Accepting Crypto Payments

Bahrain Real Estate Company Starts Accepting Crypto Payments

January 27, 2023
Industry Body Clarifies What Happens When Crypto Derivatives Crash

Industry Body Clarifies What Happens When Crypto Derivatives Crash

January 27, 2023
CFTC Pushes For Additional Crypto Acquisition Reviews

CFTC Pushes For Additional Crypto Acquisition Reviews

January 27, 2023
SBF Immediate Family Is Set To Be Questioned About The Financial Gains They Made From FTX

SBF Immediate Family Is Set To Be Questioned About The Financial Gains They Made From FTX

January 27, 2023

Recent News

Bahrain Real Estate Company Starts Accepting Crypto Payments

Bahrain Real Estate Company Starts Accepting Crypto Payments

January 27, 2023
Industry Body Clarifies What Happens When Crypto Derivatives Crash

Industry Body Clarifies What Happens When Crypto Derivatives Crash

January 27, 2023
CFTC Pushes For Additional Crypto Acquisition Reviews

CFTC Pushes For Additional Crypto Acquisition Reviews

January 27, 2023
SBF Immediate Family Is Set To Be Questioned About The Financial Gains They Made From FTX

SBF Immediate Family Is Set To Be Questioned About The Financial Gains They Made From FTX

January 27, 2023
Financial Market Examiner

Get all the latest Financial Market (Crypto & Forex) news, updates and other relevant resources here.

Follow Us

Browse by Category

  • Crypto News
  • Education
  • Forex News
  • Gaming
  • Reviews
  • Stocks

Recent News

Bahrain Real Estate Company Starts Accepting Crypto Payments

Bahrain Real Estate Company Starts Accepting Crypto Payments

January 27, 2023
Industry Body Clarifies What Happens When Crypto Derivatives Crash

Industry Body Clarifies What Happens When Crypto Derivatives Crash

January 27, 2023

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

?>