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CryptoIntelligence 2024-10-04 22:55:00

Ether’s Inflation Rate Surges, Raising Concerns Among Investors

Ether’s Inflation Rate Surges, Raising Concerns Among Investors

Ethereum’s inflation rate has surged to 0.74%, raising concerns about its long-held “ultrasound money” narrative, according to Binance’s October 2024 Monthly Market Insights report. The research report indicated that the Ether (ETH) issuance rate is at its highest level in two years, as reduced on-chain activity and lower burn rates shift the asset’s economic status. The findings highlight a growing issue for the asset, which Vitalik Buterin co-founded. They cast doubt on a long-held assumption that ETH can maintain its deflationary nature. The rise of layer-2 solutions like Arbitrum and Optimism has substantially impacted the on-chain activity of the Ethereum

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