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After a year and a half of proudly displaying its status as an “ultrasonic” cryptocurrency, Dencunu’s update has just restarted issuing ether on the Ethereum blockchain. The first since the September 2022 merger that made Ethereum a deflationary crypto. If this sharp turn revives questions, many experts see it as a new milestone in the quest for mass adoption.
Circumstances of crypto ethereum turnover
Since the implementation of Dencun, the supply of ETH has increased very slightly, inflating the total supply of Ether for the first time since March 2023. A big change that ends an 18-month monetary recession for cryptoethereum. She has so far destroyed part of her units by burning transaction fees.
Driving the shift is a reduction in transaction fees by Dencun. By making ETH transfers up to 4x cheaper, this upgrade mechanically reduced the amount of Ethereum crypto, increasing the overall net emission. No more “ultrasound money”, would we signal the end of strong value for ETH?
Towards useful trivialization?
For many specialists, it is nonsense to bring Ethereum closer to Bitcoin in the race for healthy money. The strength of the network created by Vitalik Buterin lies not in scarcity, but in its decentralized application capabilities, he believes. “Ethereum is an unrivaled infrastructure for DApps. It would be misleading to equate this with the story of Bitcoin as hard money.” cut like this Ki Young Ju, respected founder of Cryptoquant.
Ki Young Ju is not alone in holding this view. Many experts agree that Ethereum has emancipated itself from its original status as a simple cryptocurrency. Increasingly seen as a huge application site for web3, its potential for massive adoption by users and businesses will determine its value, far more than the artificial scarcity of money we think.
Whatever the opinion, the change in Ethereum’s currency regime marks a major new step in the advent of blockchain. This new twist only confirms the trajectory dedicated to challenging established codes in the crypto space. Ethereum definitely seems designed to confuse.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
