“Starting from April, network ETH distribution volume increased by approximately 60,000.”
“ETH, it is difficult to expect the effect of spot ETF on inflation”
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Benjamin Cohen, a famous digital asset (cryptocurrency) expert, argued through his
Cohen pointed out the characteristics of the Ethereum network due to the merger of Ethereum's proof-of-stake (PoS) chain in September 2022. He said, "Ethereum enjoyed a deflationary effect due to the merger of Ethereum's proof-of-stake chain, but due to the recent decline in network activity, Ethereum has shifted back to inflation." “It has increased by about 60,000 since March,” he explained.
He then emphasized, “It will take until December of this year for Ethereum to enjoy deflation at the level of the proof-of-stake chain merger, which will weaken the price of Ethereum.”
As Ethereum's circulating supply increases, it is expected that it will be difficult for Ethereum to enjoy the price increase effect that many investors expect due to the launch of the spot ETF.
In fact, the Ethereum network is converted to proof-of-stake, and the amount of Ethereum distributed on the network is strictly dependent on the participation of the network and verifiers.
Reporter Seungwon Kwon ksw@
