ETH drops below 1.6K! Will PoS definitely lead to deflation? ETH has shown inflation for seven days.
After entering the Proof of Stake (PoS) era, Ethereum's "stable issuance", "significant staking", and the "burning of base fees" have created expectations for Ethereum to enter a deflationary period, with a positive outlook on ETH price steadily rising. However, during bear markets, not only does the price of ETH perform poorly, but Ethereum's network fees also reach low levels due to low usage.
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Ultra Sound Money: ETH Shows Inflation for Seven Consecutive Days
According to the data website Ultra Sound Money, ETH has been showing inflation for seven consecutive days, meaning that the issuance of ETH is greater than the amount destroyed by network fees:
However, this is only a short-term phenomenon, and the rate of circulation increase is still significantly lower compared to the Proof of Work era:
In conclusion, it can be seen that even with "stable issuance," "significant staking," and "basic fee burning," ETH cannot guarantee deflation if network activity is low.
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