Ethereum’s net supply growth, what’s happening?

Over the last month, Ethereum's supply has increased by 46,303 ETH. During this time, 77,708 ETH was issued, but 31,404 ETH was burned. So ETH's net supply is now increasing, and the burn rate is about 0.73 ETH per minute.

Right now the total supply is at 120,516,667 ETH, the annual supply growth rate currently is at 0.47%. This means that ETH currently is an inflationary supply crypto. However, ETH's supply growth is still much lower than BTC's.

The biggest contributors to ETH burns are:

• Uniswap
• Regular transactions
• Tether
• Blobs

For now, these activities are canceling out issuance, but are not enough to make ETH deflationary in recent months. This small net increase in supply might cast a shadow on the long-term economic model for Ethereum. The Merge and EIP-1559 were supposed to make ETH deflationary over time, but periods of low activity can still lead to small net issuance. If demand across the network increases again, Ethereum could return to being deflationary. Until then, the supply will continue to increase slowly.

But at least fees are cheaper right now, so it's a great time to transact on Ethereum. Lower gas means we can swap, stake, and use dApps without worrying about high fees. This is a perfect opportunity to interact with Ethereum.

Data source: https://ultrasound.money