What does an increase of 77,000 Ether in monthly supply and an annual inflation rate of 0.777% mean?

Question

[Coin World] On-chain data from early December showed a noteworthy trend: Ethereum has net increased by 77,380 ETH in the last month.

The total supply of ETH has currently reached 121.2 million coins, with an annualized growth rate stabilizing at around 0.777%. What does this growth rate mean? Simply put, Ethereum is currently in a mild inflation state, with the annual increase in coin amount being less than 1% of the total supply.

Compared to the deflationary phase that appeared after the implementation of EIP-1559, the current on-chain burning rate clearly cannot keep up with the pace of new coin issuance. Network activity, Gas consumption, and staking rewards—these variables together determine the final trend of ETH supply.

GateUser-bd883c58 · Accepted Answer

0.777%? This inflation rate is not bad, much better than fiat.

FortuneTeller42 · Answer

0.777%, sounds nice, but it&#39;s actually just point shaving.

Monthly burn can&#39;t keep up with monthly increase, doesn&#39;t that just lead back to the old path?

Everyone says there should be deflation, but in the end, it&#39;s still relying on PoS to suck blood to maintain.

When Gas is low, naturally there will be less burning, which is normal to think about.

Stake rewards are getting more and more diluted, Large Investors are the real winners.

BearMarketBarber · Answer

0.777%? To put it bluntly, it means they are still printing money.

The burning rate of coins can&#39;t keep up, and the network activity is too low.

It was so good back when EIP-1559 was introduced, but now it&#39;s not working.

This data looks a bit subtle... is the stake yield being diluted?

An increase of over 70,000 coins per month, tmd feels like eth is depreciating.

MevHunter · Answer

0.777% inflation rate, wow, that&#39;s much better than the dollar&#39;s conscience

Burning isn&#39;t keeping up with issuance, which means the network should be more active

Staking returns can still be stable, but I&#39;m worried about when the gas fees will warm up again

liquidation_watcher · Answer

Burning can&#39;t keep up with the issuance, that&#39;s frustrating.

ETH still needs to rely on network activity to pump up.

0.777% sounds mild, but it feels like it’s about to be diluted.

Can the staking part be optimized a bit more?

NFTRegretDiary · Answer

0.777%, less than 1%, sounds okay

What happened to the promised deflation? Why is there point shaving again?

Gas fees are so high but still can&#39;t be produced, it&#39;s hilarious.

FlashLoanKing · Answer

0.777%? Why is this number so particular? Does it imply something?