Ethereum’s Net Issuance and its Price Impact
As Ethereum has moved from Proof of Work (PoW) to Proof of Stake (PoS), block rewards have been reduced. Together with an earlier protocol update which leads to the base fee of transactions being “burned”, i.e., tokens being removed from circulating supply, net issuance of ETH has turned negative.
Given Ethereum’s growing role in the crypto space, this leads to the following questions:
- What will happen to the net issuance of Ethereum as Ethereum transaction volume increases?
- How will this impact Ethereum’s price?
This article will explore the current trends in net issuance and elaborate on how the recent protocol updates might impact prices.
As Ethereum has moved from Proof of Work (PoW) to Proof of Stake (PoS), block rewards have been reduced. Together with an earlier protocol update which leads to the base fee of transactions being “burned”, i.e., tokens being removed from circulating supply, net issuance of ETH has turned negative.
Given Ethereum’s growing role in the crypto space, this leads to the following questions:
- What will happen to the net issuance of Ethereum as Ethereum transaction volume increases?
- How will this impact Ethereum’s price?
This article will explore the current trends in net issuance and elaborate on how the recent protocol updates might impact prices.
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