TechFlow news, on July 20, cryptocurrency data aggregation platform CoinGecko released a report stating that Ethereum (ETH) entered an inflationary mode in the second quarter of 2024, with the circulating supply increasing by 120,818 ETH. This shift was primarily due to reduced Ethereum network activity and lower Gas fees, resulting in a significant decline in the token burn rate.
The report showed that during the second quarter, 107,725 ETH were burned on the Ethereum network, while 228,543 ETH were issued, leading to a net increase of 120,818 ETH. The ETH burn rate dropped 66.7% quarter-on-quarter, mainly driven by decreased network activity and lower Gas fees. Although ETH transfers still contributed to the burning of 6,838 ETH, value transfer activities on the network declined overall.
