Ethereum inflation rate remains low, with supply surpassing 120 million ETH

Ethereum’s inflation rate remains at a very low level, and this characteristic is gradually becoming a core competitive advantage of its long-term value proposition. According to the latest statistics from Ultrasound Money, during the ongoing post-merge operation, Ethereum’s token supply structure continues to evolve, providing new reference data for the market.

Steady Supply Growth, Low Annual Inflation Rate

Since the merge upgrade, Ethereum’s circulating supply has steadily increased, with an addition of over 950,000 tokens. The current total supply has surpassed the key milestone of 120 million ETH, reaching approximately 120,692,268 ETH. More notably, the annual inflation rate has remained at a low level of 0.23%—a very moderate growth rate for a global smart contract network with high daily transaction volume.

Compared to traditional financial assets and other mainstream blockchains, Ethereum’s inflation rate is among the industry leaders. This low-inflation characteristic means that existing holders face relatively less asset dilution, which is beneficial for maintaining the token’s value stability over the long term.

Effects of the Merge Upgrade and Formation of a Low-Inflation Model

Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) fundamentally changed its issuance mechanism. After the merge, Ethereum’s new supply significantly decreased, with the inflation rate dropping sharply from over 4% to now 0.23%, forming a rare low-inflation operating mode in the industry. This change is not only a result of technological upgrade but also reflects a rebalancing of the entire ecosystem economy.

The continuous daily transaction fee burning mechanism further consolidates this situation. When on-chain activity prospers, the inflation rate may even turn negative, which is a unique advantage among crypto assets.

Long-term Holding or Seeking Staking Rewards: Multi-Dimensional Investment Decisions

Faced with a 0.23% inflation rate, investors’ decision-making logic has diversified. Some investors prefer to hold long-term, relying on the appreciation driven by increased token scarcity. Others turn to on-chain staking protocols, earning additional rewards through staking to hedge against inflationary pressures.

In this low-inflation environment, asset allocation becomes more diversified. Long-term holders need to weigh their risk tolerance and expected returns to balance passive holding and active participation in the ecosystem.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Please conduct thorough research and risk assessment before making any investment decisions.