The inflation situation in the Ethereum network is waning after the DenCon update, as data shows a significant increase in Ethereum supply since mid-April. Despite its benefits of reducing transaction fees, the March DenCon update affected Ethereum’s inflationary status, a major selling point for long-term investors. May witnessed a historic development in the cryptocurrency market, as Ethereum received final approval from the Securities and Exchange Commission to enter its exchange-traded funds.
After years of opposition and efforts by cryptocurrency activists, a unique opportunity has been presented to commercialize Ethereum in unexpected ways. This approval comes at a very appropriate time, as global financial markets become receptive to investments in innovative financial technology, such as the $11.7 billion capital flow into Bitcoin ETFs since the beginning of 2024.
What is the daily trading volume of Ethereum (ETH)? The trading volume for Ethereum (ETH) is 10,105,043,401 US$ in the last 24 hours, which represents a -8.80% decrease since 1 day ago, and indicates a low level of market activity recently.
What is the highest rate ever recorded by Ethereum (ETH)? The highest price paid for Ethereum (ETH) was $4,878.26, recorded on November 10, 2021 (over 2 years). The current price is relatively 30.22% lower than the highest price ever recorded.
What is the lowest rate recorded by Ethereum (ETH)? The lowest price paid for Ethereum (ETH) was $0.433, recorded on October 20, 2015 (over 8 years). The current price is relatively 786,140.07% higher than the lowest price ever recorded.
What is the market cap of Ethereum (ETH)? The market cap of Ethereum (ETH) is US$409,094,098,814 and is ranked #2 on CoinGecko today. Market capitalization is calculated by multiplying the token price by the traded volume of ETH tokens (120 million tokens in circulation on the market today.
More than 112,000 ETH were added to the total supply
Despite initial hopes, Ethereum is now experiencing its longest inflationary period since its transition from Proof of Work (PoW) to Proof of Stake (PoS). More than 112,000 ETH have been added to the total supply since mid-April, countering the expected inflationary effects.
With the approval of Ethereum ETFs from the Securities and Exchange Commission, Ether is now officially listed on the financial markets. This institutional support brings new financial credibility to Ether, and it now enjoys a level of recognition previously reserved for traditional assets such as gold and oil. Consequently, investment giants such as BlackRock and Van Eck, which have already established large positions in Bitcoin ETFs, are moving towards Ether.
These major companies are now turning their attention to Ethereum, reflecting the growing importance and recognition of its value as an investment vehicle. This move is expected to attract new interest from investors and other institutions looking to expand into the field of cryptocurrencies and intend to expand their investment portfolio to include Ether alongside Bitcoin. Dencon, in particular its model EIP-4844, has been updated with the aim of cementing Ethereum’s place as the “super money of sound”. Although it succeeded in reducing tariffs, it inadvertently reduced the amount of content burned on the mainnet. These techniques slow the burn rate, causing Ethereum to increase back into inflation territory.
According to expert analysis based on the current activity rate in the network, Ethereum may not be inflated again. The narrative about ‘hypersonic money’ may be over, or it may require much higher network activity.” Based on the 0.59% photo inflation rate otherwise, the narrative about “hypersonic money” is avoided. Actually, Ethereum units are issued at a rate greater than It is being burned, and this contradicts the previous inflationary narrative.
Analysis of Ethereum market developments: from ICO to Layer 2
Ethereum conducted an initial coin offering (ICO) in 2014, before launching the Ethereum blockchain in 2015. In 2016, ETH sometimes traded for less than $10 a coin. The value of ETH rose dramatically in terms of Ethereum to US Dollar, or ETH to USD, in the following years, reaching a peak of over $4,500 per coin in 2021. The price of ETH over time, however, has shown polarization, similar to other assets in the space. Cryptocurrencies.
Ethereum gas prices are another measure of Ethereum prices that comes missing when looking at the Ethereum blockchain. Ethereum gas fees became a noticeable burden in 2020 and 2021.
The report cited by BeInCrypto outlines some progress on its mission in the Ethereum space and its impact on the Layer 2 system and Ethereum ETFs. Here’s a breakdown of the key points:
Expansive activity on Ethereum: Ethereum is experiencing expansionary activity at its highest levels due to a significant reduction in gas costs associated with the belief of transactions on Layer 2 networks. This activity increases the development of new blockchain applications and leads to enhanced Layer 2 and Layer 3 solutions.
Impact of inflation on the system: The recent inflation in Ethereum, which added more than 112,000 ETH, may affect the layer 2 system. Inflation may increase mainnet fees and push users to postpone layer 2 solutions that have lower fees and faster transactions. This may require re-evaluating security models in Layer 2 networks to ensure robustness and decentralization.
Bloomberg’s top ETF analyst believes Ethereum ETFs will begin trading online July 2. This comes after positive comments from the US Securities and Exchange Commission on filings for an Ethereum spot ETF support this fantasy and fuel optimism that it could launch soon.
