Fidelity Report: Ethereum inflation soared last quarter, how did the market react? 📢
👋Hey, all cryptocurrency fans, today we are going to talk about the latest report from Fidelity Digital Assets, which brings some big news to our Ethereum!
Fidelity reported that Ethereum experienced the worst inflation period in history last quarter, with the total supply increasing by about 110,000 ETH and the annual inflation rate reaching 0.37%. 😱
They believe that the reason is the "credit" of the Dencun upgrade. Because since the Dencun upgrade in March, Ethereum's sidechain has developed rapidly, and Layer2 transaction volume (that is, sidechain transactions) has increased by 20%!
We all know that Ethereum has a burning mechanism. The more people trade on the main chain, the more Ethereum will be burned. Sounds like a good thing, right?
But the fact is that after the Dencun upgrade, everyone ran to the sidechain to trade, so the burning speed of Ethereum will slow down, causing the inflation problem in the recent quarter to become more serious.
It's like the "burning" we were expecting was moved to another place, and the atmosphere on the main field was indeed cold, but the burning speed of the side chain tokens also slowed down, which led to one of the reasons for the inflation of the main chain tokens!
So, the question is: What do you think of this situation? Do you think the rise of side chains will have a long-term impact on Ethereum's inflation? Will the appearance of Ethereum ETF bring a new turn to the market?
👇💬 Hurry up and say your opinion in the comment area, let's talk about the future of Ethereum and the potential of ETFs!
