TechFlow news, March 3 — According to Forbes, Bitcoin has long been hailed as "digital gold," with its fixed supply cap of 21 million coins considered the foundation of its scarcity and value storage properties. However, since Ethereum's Merge upgrade in September 2022, it has outperformed Bitcoin in controlling supply expansion, achieving a lower supply growth rate than Bitcoin—challenging the long-held assumption that Bitcoin is the best sound money.
Data shows that after Bitcoin's most recent halving in April 2024, its annual supply growth rate dropped to 0.83%. In contrast, Ethereum has adopted a different supply management approach. Since transitioning to a proof-of-stake (PoS) system, its deflationary characteristics have become increasingly evident. The fee-burning mechanism introduced in August 2021 has at times caused Ethereum's total supply to contract rather than expand.
