Ethereum Becomes Inflationary, Uniswap Slows ETH Burn Rate: What's Happening?-web3.0-php.cn

Home

web3.0

Ethereum Becomes Inflationary, Uniswap Slows ETH Burn Rate: What's Happening?

WBOYWBOYWBOYWBOYWBOYWBOYWBOYWBOYWBOYWBOYWBOYWBOYWB

Aug 10, 2024 pm 09:41 PM

ethereum Inflation

The world of crypto is in turmoil, and not just because of the usual price fluctuations. Ethereum, once praised for its deflationary mechanism, surprises by becoming inflationary for the first time in two years.

Ethereum Becomes Inflationary, Uniswap Slows ETH Burn Rate: What's Happening?

Cryptocurrency world is in turmoil, not only because of the usual price movements. While Ethereum, praised for its deflationary mechanism, surprisingly became inflationary for the first time in two years, Uniswap, giant of decentralized exchanges, experienced a slowing burn rate, leaving observers puzzled. Let's dive into the details of this unexpected development.

From Deflation to Inflation: A Turning Point for Ethereum Crypto

The year 2024 marked a turning point for Ethereum crypto. After gradually reducing its supply through EIP-1559 over two years, Ethereum took an unexpected direction by becoming inflationary.

In the second quarter of this year, the network added a net total of 75,301 ETH to its supply, reversing the much-touted deflationary trend.

What happened? It starts with decreased activity on the network. Indeed, the second quarter saw 228,543 ETH issued versus only 107,725 ETH burned.

This difference of 120,818 ETH added to the overall supply left experts scratching their heads. While it was thought that inflation was reserved for fiat currencies, Ethereum proves that even cryptos are not immune to surprises.

This sudden inflation reflects a decrease in activity on the network, raising questions about Ethereum’s future as a deflationary asset. Although this situation is likely temporary, it highlights the challenges Ethereum must face, particularly regarding supply management during periods of low activity.

Uniswap: The Crypto Giant Slows Down

One of the largest ETH burners, Uniswap also experienced a notable slowdown in 2024. Although it burned 71,915 ETH this year, the burn rate significantly dropped in the second quarter.

Starting with an impressive 54,413 ETH burned in the first quarter, it plummeted to only 15,031 ETH in the second quarter, a decrease of 72.4%.

Why this sudden drop? The answer lies in decreased activity on decentralized exchanges, including Uniswap. Fewer transactions mean fewer gas fees, leading to a reduced ETH burn rate.

This slowdown could indicate a temporary change in investor appetite for decentralized exchanges, or perhaps a simple market readjustment after a period of euphoria.

Despite this decline, Uniswap remains a key player in the Ethereum ecosystem. However, its ability to influence the ETH supply heavily depends on user activity. If the crypto market doesn’t pick up quickly, we could see a prolonged period of reduced burning, with implications for ETH inflation.

Other Players in the Network

Beyond Uniswap, other players in the Ethereum network also play a role in the supply dynamics. Trading bots like Banana Gun and Maestro, once significant ETH burners, saw their burn rates drop 74.3% and 74.6% respectively in the second quarter. This slowdown is explained by decreased trading on decentralized exchanges, which directly affects their ability to burn ETH.

Another noteworthy player is the Layer 2 blockchain Scroll, which is among the top ten ETH burners in 2024. This position can be attributed to users interacting with the network in hopes of receiving potential rewards, particularly a token airdrop, which might take place this year. The combination of these factors creates a complex landscape for Ethereum and its burn mechanism.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

The above is the detailed content of Ethereum Becomes Inflationary, Uniswap Slows ETH Burn Rate: What's Happening?. For more information, please follow other related articles on the PHP Chinese website!

Statement

The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn

Trend Research Analysis: ETH optimistic forecast is $10,000 in the new cycleMay 14, 2025 pm 10:51 PM

Since the entire research report was released on April 24, 2025, TrendResearch has risen from US$1,800 to around US$2,400, with an increase of about 30% in one month. The prediction before the research report was written was even more than US$1,450. As an asset target of a scale of 100 billion, it is a rare opportunity for large funds to achieve high returns in the short term. The main reasons for firmly bullish at that time include: ETH still has stable financial data, and its status as an important infrastructure for encryption has not changed; the short-term high has been greatly adjusted (the decline of more than 60% in four months); the derivatives market has a huge short position, and the bottom spot has risen to an important support and resistance swap area after increasing volume, which is traditional financial

What is Sign Protocol (SIGN)? Guide to getting started with cross-chain verification networksMay 14, 2025 pm 10:48 PM

Blockchain technology continues to change the way people exchange value, verify information and build trust online. As decentralized applications flourish in various industries, the ability to confirm statements and identities across multiple blockchains has become increasingly important and complex. Traditional trust models that rely on centralized authority are often insufficient to support a decentralized ecosystem, so the demand for blockchain native verification solutions is also growing. SignProtocol (SIGN) addresses this challenge by providing a framework for creating, verifying, and managing proofs across multiple blockchain networks. SignProtocol aims to create a full chain

Bitget announces VOXEL transaction rollback! The user will be compensated for the lossMay 14, 2025 pm 10:45 PM

Cryptocurrency exchange Bitget recently announced that it will roll back transactions during this period due to abnormal trading fluctuations in the VOXEL contract market and propose compensation plans. However, the use of the statement "user manipulates the market" in the official announcement has caused doubts about its improper handling of public relations, fearing that this will lead to further expansion of the crisis. The abnormal trading of BitgetVOXEL tokens has caused internal market making concerns between 8:00 and 8:30 am yesterday Beijing time, an abnormal trading event of VOXEL tokens broke out on the Bitget Exchange. The trading volume during this period even exceeded Bitcoin for a time, causing the market to question the transparency of its internal operations. After the incident occurred due to the violent fluctuation of VOXEL token prices, the community began to question the possibility of Bitget

What is KuCoin Exchange? KuCoin novice account registration teaching and security analysisMay 14, 2025 pm 10:42 PM

What is the KuCoin Exchange? KuCoin Exchange Background KuCoin Exchange Brand Story Is KuCoin Exchange safe? The first step in KuCoin account registration teaching: Register a KuCoin account step in the second step: Complete the third step of identity verification: Start two-step verification and add-on screening: KuCoin's unique GemSPACE summary KuCoin is the top 15 cryptocurrency exchanges in the world. It uses the trading platform of the whole nation as the concept, providing a safe and convenient trading experience. This article will provide you with an in-depth look at the background, security, account opening process and how to leverage KuCoin's unique Ge

What is ALPACA currency? After Binance was removed, the price of the coin soared. What is the future prospect of $ALPACA?May 14, 2025 pm 10:39 PM

Catalog ALPACA Coin Latest News and Price Updates What is AlpacaFinance (ALPACA)? How does AlpacaFinance work? What is ALPACA currency? ALPACA Token Economics ALPACA Price Trend Analysis 2025 ALPACA Price Forecast AlpacaFinance (ALPACA) Future Outlook How to buy ALPACA Coin? Summary AlpacaFinance (ALPACA) is a lending protocol on Binance Smart Chain, with the characteristics of leveraged income agriculture. Since Binance announced that it will be removed from AL on May 2

Arthur Hayes analysis: Now may be the last chance to get on the car for Bitcoins under $100,000May 14, 2025 pm 10:36 PM

Arthur Hayes, the founder of BitMex, who we are familiar with, once again made a statement on the market! This time he said on the X platform: "Seriously, relatives, now may be your last chance to buy Bitcoin below 100,000 yuan." In the Bitcoin rise in the past 30 hours, Arthur Hayes posted: "Just like the Easter Bunny, the price of $BTC will jump five times in a row!" Hayes also revealed that he will release a new article this week, with the theme of "BBCBazooka" and Treasury bond repurchase. ArthurHayes has been predicting a price decline after the price of Bitcoin fell to within 90,000 yuan, but now it has turned bullish. Looking back on his predictions for Bitcoin over the past few months, although specific numbers may

Cardano (ADA) 2025–2028 10x potential analysis: The path to revaluation of smart contract platformsMay 14, 2025 pm 10:33 PM

Cardano (ADA) 10x potential analysis for 2025–2028: The path to revaluation of value of smart contract platforms The current ADA price is about $0.778. If 10x growth is achieved, the potential price in the future will reach $7.78 and the market value is about $270 billion. This prediction is not a fantasy, but is based on Cardano's strong potential driven by multiple factors such as technological innovation, ecological expansion and market demand. 1. Technology Progress: The Combination of Smart Contracts and Zero Knowledge Proof Since Vasil upgraded, Cardano's smart contract platform Plutu

What currency is SWCH? Is it worth investing? Detailed tutorial on purchasing SWCH coinsMay 14, 2025 pm 10:30 PM

Cryptocurrency market projects have emerged with the development of blockchain, with the purpose of changing traditional financial practices, and SwissCheese is one of them. It is understood that SwissCheese is a decentralized platform that allows users to trade tokenized stocks, aiming to enhance market access and reduce transaction costs, paving the way for a more inclusive financial environment. The native token of the platform is SWCH, and its main functions are transactions, governance, etc. The project immediately attracted investors' attention after it went online, but only know what currency is SWCH? Can't we analyze that SWCH is worth investing in? Based on the current data, SWCH has a certain