Ethereum's inflation rate has hit a two-year high as layer-2 solutions reduce transaction burns, challenging its deflationary promise, according to Binance Research's October 2024 Monthly Market Insights report.

Ether (ETH) issuance surged to 0.74%, raising concerns about Ethereum's long-held "ultrasound money" narrative. Reduced on-chain activity and lower burn rates have shifted Ethereum's economic status, calling into question its ability to maintain its deflationary nature.

Layer 2 Expansion Lowers ETH Burn

The rise of layer-2 solutions like Arbitrum and Optimism has significantly impacted Ethereum’s layer-1 blockchain activity. These L2 networks process transactions off the main Ethereum network, reducing gas fees and, in turn, decreasing the amount of ETH burned through transaction fees.

Ethereum Improvement Proposal (EIP) 1559, introduced in 2021, burns a portion of transaction fees, but with fewer mainnet transactions, the amount of burned ETH has dropped, pushing Ethereum away from its deflationary goals.

‘Ultrasound Money’ Narrative in Question

Binance's report highlights the changing dynamics:
“As L2s cannibalized network activity throughout the year—further impacted by broader market conditions—transaction fees and burned fees on Ethereum declined, with September recording one of the lowest levels since the Merge.”

With ETH issuance now outpacing burns, Ethereum’s supply has increased, threatening its reputation as "ultrasound money."

Buterin’s Call for Solo Staking

In response to these shifts, Ethereum co-founder Vitalik Buterin has advocated for lowering the 32 ETH minimum deposit required for solo staking, suggesting that dropping it to 16-25 ETH could broaden participation and strengthen decentralization.

💎 Enter MoonPrime Games ($LUNAR): A Game-Changer Amid Market Shifts

While Ethereum's inflation challenges raise concerns, the Web3 gaming sector is providing innovative opportunities. One standout project is MoonPrime Games ($LUNAR), an ecosystem combining cutting-edge AI and blockchain to revolutionize gaming.

As Ethereum faces hurdles in maintaining its deflationary status, MoonPrime Games offers a different kind of innovation—AI-driven, decentralized economies where non-playable characters (NPCs) actively buy, sell, and socialize, creating dynamic virtual worlds. Players can participate in these economies, with every NPC interaction providing a chance to profit in real-time.

$LUNAR Market Cap: $500k
Price: $0.000509

Unlike many gaming tokens, $LUNAR isn't just speculative—it's at the heart of a growing AI-driven metaverse. The MoonPrime ecosystem’s NPCs don’t follow scripted paths; they adapt, evolve, and engage based on player decisions, making this a truly player-driven economy.

📈 Price Prediction:

With AI and gaming on the rise, experts predict that $LUNAR could soar past $1,000 by 2025, offering massive upside potential for early investors.

🌐 Website: moonprime.games (paste it in your browser)

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