Ethereum (ETH) is experiencing modest but ongoing inflation, with its supply potentially hitting new highs by the end of 2024.
The Ethereum network, which recently transitioned from mining to a proof-of-stake system, has reached a record supply of 120,532,000 ETH. This high supply level was achieved as the network began burning a portion of transaction fees. Despite this, Ethereum’s total supply has risen again to 120.25 million ETH, following a brief decline to 120.07 million in April 2024.
In the second quarter of the year, Ethereum added 120,818 tokens to its supply. This increase aligns with a broader trend of growing inflation, driven by a decrease in the burn rate by 66.7% and relatively high transaction fees, which have fluctuated between $2 and $10. Meanwhile, Layer 2 (L2) solutions have seen a significant uptick in usage, with L2 transactions doubling from 2023 levels and growing another 37% in Q2.
The Ethereum network’s inflation rate has risen to an annualized 0.63%, while daily transactions have stabilized at around 1.2 million. Despite the increased supply, the Ethereum ecosystem remains robust, with major L2 chains like Optimism, Arbitrum, and Base attracting substantial traffic.
Over $12 billion is currently locked in bridges between Ethereum and various L2 solutions, predominantly in wrapped ETH and ERC-20 tokens. Although ETH has struggled to gain traction recently, failing to capitalize on the launch of new ETFs, it shows signs of potential recovery. Historical data indicates that August is typically a weak month for ETH, but current market conditions and upcoming ETF inflows could lead to a rebound, with resistance levels set around $3,800 and potential support near $3,000.
Ripple Chairman Chris Larsen has recently moved 20 million XRP as part of a larger shuffle involving 50 million tokens.
Crypto-focused travel booking platform Travala has announced its integration with Solana, the fourth-largest blockchain by market cap, marking its third network addition after Ethereum and BNB Chain. CEO Juan Otero revealed this development during a panel at Solana Breakpoint in Singapore.
Crypto analyst Ali Martinez has indicated that an altseason may be imminent, a phase where alternative cryptocurrencies outperform Bitcoin.
The Pyth Network has introduced Oracle Integrity Staking (OIS), a feature designed to enhance accountability among data sources by implementing staking rewards and penalties.