While the supply of bitcoin is slowing after the halving , the supply of ether is growing at its fastest rate since 2022, according to CryptoQuant – crushing some investor's dreams of ether as an asset that would grow increasingly scarce.
The median transaction fee is about 4x lower now that it was before Dencun for the same level of network activity.
Some investors had hoped ether could compete with bitcoin, whose rate of supply growth slows every four years after the halving.
For many, that idea was a side effect of the primary thesis on Ethereum, which sees it as a growing, scalable transaction network on which to build applications.
Network activity would have to increase 3 to 4x to reverse the growing supply trend, if this relationship holds, he said.
Persons:
Dencun, Julio Moreno, CryptoQuant's, Ethereum, Moreno
Locations:
ETH