Row 48227

Row ID: 48227 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 48227 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

So is ETH inflationary or not? Yes and no. The answer is that its actually deflationary when the demand for the blockchain is really high. Since the block size is limited and when the demand exceeds that limit some ETH is burned to slow down the growth of the blockchain. This has been happening since the Merge upgrade and its one reason why ETH has been deflationary

When theres spare room in the blocks and gas prices (gwei) are lower than 25 ETH becomes inflationary. This is because the network wants to encourage more usage and transactions on the chain. Though when gwei rises above 25 it means the blockchain is congested and some ETH is burned to increase its value and slow down the growth of the network. Its a smart system that helps maintain a healthy balance between demand and supply

The recent interest from the SEC in approving spot ETH ETFs has raised concerns about a potential supply shock for ETH. Institutions will be looking to diversify their portfolios and invest in ETH. This will make the demand go really high

With that in mind the supply is going to be limited because over 27% of ETH's total supply is currently staked and unavailable for immediate purchase. Theres a lot of ETH tied up in core protocol functions, DeFi systems and DAOs. The other thing is the networks fee burning mechanism which burns some of the ETH generated as transaction fees. This is also going to limit the supply

This would cause whats called a supply shock and i ts likely that the high demand for ETH could lead to a big price increase

Thoughts?

FieldValue
text So is ETH inflationary or not? Yes and no. The answer is that its actually deflationary when the demand for the blockchain is really high. Since the block size is limited and when the demand exceeds that limit some ETH is burned to slow down the growth of the blockchain. This has been happening since the Merge upgrade and its one reason why ETH has been deflationary When theres spare room in the blocks and gas prices (gwei) are lower than 25 ETH becomes inflationary. This is because the network…
label r/ethtrader
dataType post
communityName r/ethtrader
datetime 2024-05-22
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url_encoded Z0FBQUFBQm5Lak9ncGJaUHVhZ25jeklUV09xM2c5TUdqbHBNOXJOQ0Y1eFhzdVpfS21LNEFMa0JBUjJObVEwVXBSZHduYjBKSUYtcEcyV1BLMlhXR2xscGJrcndRenBNUl9rRXoxeG12TmZWbTdkbUFMdlI2MW1aUHZ3SHBydXY5VFh0eXdDaDZIRWFHQnVzVzN1ZG9Td0tHWllHWjJJdlItZE5vZU00dG1odmpTUGNvOTJoVXhleTRWVUFFbHdhbUlKSTlLaDRNdmVNNnRHWUZQLUpmNnJjQTlWZUhaakVCUT09

Raw Record

{
  "text": "So is ETH inflationary or not? Yes and no. The answer is that its actually deflationary when the demand for the blockchain is really high. Since the block size is limited and when the demand exceeds that limit some ETH is burned to slow down the growth of the blockchain. This has been happening since the Merge upgrade and its one reason why ETH has been deflationary\n\nWhen theres spare room in the blocks and gas prices (gwei) are lower than 25 ETH becomes inflationary. This is because the network wants to encourage more usage and transactions on the chain. Though when gwei rises above 25 it means the blockchain is congested and some ETH is burned to increase its value and slow down the growth of the network. Its a smart system that helps maintain a healthy balance between demand and supply\n\nThe recent interest from the SEC in approving spot ETH ETFs has raised concerns about a potential supply shock for ETH. Institutions will be looking to diversify their portfolios and invest in ETH. This will make the demand go really high\n\nWith that in mind the supply is going to be limited because over 27% of ETH's total supply is currently staked and unavailable for immediate purchase. Theres a lot of ETH tied up in core protocol functions, DeFi systems and DAOs. The other thing is the networks fee burning mechanism which burns some of the ETH generated as transaction fees. This is also going to limit the supply\n\nThis would cause whats called a supply shock and i ts likely that the high demand for ETH could lead to a big price increase\n\nThoughts?",
  "label": "r/ethtrader",
  "dataType": "post",
  "communityName": "r/ethtrader",
  "datetime": "2024-05-22",
  "username_encoded": "Z0FBQUFBQm5Lak1SdU5ISUNnOXREVExFMjdpSU5iNktnSUFONXVBbE43QWZwb1ZNeWRZdWxTcXZxc2QzVE1tdTczQ19mV1NLaGJ0TzVxaFFkb3R2SWN4bDVfRmNKN1htRkxIMi1sM0xUTWdvTnFvWXl4d2xBMVU9",
  "url_encoded": "Z0FBQUFBQm5Lak9ncGJaUHVhZ25jeklUV09xM2c5TUdqbHBNOXJOQ0Y1eFhzdVpfS21LNEFMa0JBUjJObVEwVXBSZHduYjBKSUYtcEcyV1BLMlhXR2xscGJrcndRenBNUl9rRXoxeG12TmZWbTdkbUFMdlI2MW1aUHZ3SHBydXY5VFh0eXdDaDZIRWFHQnVzVzN1ZG9Td0tHWllHWjJJdlItZE5vZU00dG1odmpTUGNvOTJoVXhleTRWVUFFbHdhbUlKSTlLaDRNdmVNNnRHWUZQLUpmNnJjQTlWZUhaakVCUT09"
}
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