Q2 Ethereum turned to inflation, and the circulating supply increased by 120,818 coins
On July 20, the cryptocurrency data aggregation platform CoinGecko released a report stating that Ethereum changed to inflation mode in the second quarter of 2024, and the circulating supply of ETH increased by 120,818 pieces. This change is due to reduced activity on the Ethereum network, resulting in a significantly lower burn rate.
In the second quarter of 2024, the Ethereum network burned 107,725 ETH while 228,543 ETH were issued, resulting in a net increase of 120,818 ETH in the circulating supply.
The ETH burn rate dropped 66.7% month-on-month due to reduced network activity and lower gas fees. Declining transaction volumes were a significant contributor to this decline.
In the second quarter of 2024, ETH transfers were the area that contributed most to the destruction of ETH, with 6,838 ETH destroyed. This reflects that although the use of the network for value transfer has declined, it continues to exist.
