Ethereum’s inflation rate has risen to 0.74%, questioning the long-standing “ultrasound money” narrative, according to Binance’s October 2024 Monthly Market Insights report.

The research report noted that the Ether (ETH) issuance rate is at its highest level in the last two years, while the asset’s economic situation has changed with reduced on-chain activity and lower burn rates.

The rise of Layer-2 solutions has significantly impacted the on-chain activity of the Ethereum Layer-1 blockchain. This has reduced transaction fees and reduced the amount of ETH burned.

What do you think about whether ETH can maintain its deflationary nature? Let’s discuss in the comments.