The promise of Ethereum’s deflationary dreams has hit a sobering reality check. For 72 straight days, ETH’s supply has been climbing steadily, adding a whopping 50,000 ETH to circulation. So much for that whole “ultra-sound money” narrative.
Ethereum’s deflationary hopes fade as supply swells by 50,000 ETH over 72 days, challenging its ultra-sound money claims.
The Dencun upgrade, launched in March 2025, isn’t helping matters. Sure, it brought those fancy “blobs” for layer-2 networks and slashed base fees by 90%, but there’s a catch. Lower fees mean less ETH burning, and now the network’s looking more inflated than a pool float on a hot summer day. At this rate, ETH supply could balloon by $2.4 billion over the next year. Despite current challenges, projections suggest ETH could reach a maximum of $7,194.28 by the end of 2025.
Meanwhile, Solana‘s been stealing Ethereum’s thunder. Their trading volume just leapfrogged ETH’s by $1.1 billion, thanks to a memecoin craze that’s making Ethereum look like yesterday’s news. Book of Meme hit $1.45 billion market cap faster than you can say “FOMO,” and NAP token pulled off a crazy 18-hour surge from $20 million to $330 million.
ETH’s price has been stuck in a rut, bouncing between $1,800 and $2,200. Standard Chartered’s analysts must be feeling pretty sheepish after slashing their 2025 target from $10,000 to $4,000. Like traditional bond interest payments, ETH staking rewards offer predictable returns amid market volatility.
And let’s not forget the network’s embarrassing hiccup when 50% of transactions failed for 20 minutes straight on March 16.
The institutional crowd isn’t giving up hope, though. ETF inflows topped $1 billion in late 2024, and some optimists are still dreaming of $6,000 to $20,000 ETH prices. Daily liquidations have hit record highs of over $300 million, showing just how volatile the market has become.
But with the supply steadily climbing and Solana eating Ethereum’s lunch in the meme department, those dreams might need a reality check.
The numbers don’t lie: 120.63 million ETH in circulation, no maximum supply cap, and an inflation trend that’s making Bitcoin maxis smirk.
Even the Fed’s expected rate cuts in 2025 might not be enough to save ETH from its current identity crisis.
