300.000 Ethereum removed from supply

Since the merge, which was 316 days ago, the Ethereum network burned over 870.000 Eth and therefore limit the supply by 300.000 Eth. With out the upgrade to proof-of-stake the supply would have increased by over 3 million Eth in the same period.

The price of Ethereum doesn’t really reflect the reduced supply as the price is still close to the one on the day before the merge. This could be critical when the next bull run comes around, but before that I want to talk a little bit about the pros and cons such high burn rate has on the network and potential reduced wide-spread adoption of cryptocurrencies.

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https://preview.redd.it/85z7t1k4speb1.png?1570&format=png&auto=webp&s=d8ed3ea0754ac26a44c6c9397cacf82dfa4f6e9a

Here are my pros and cons – what major part did I miss

Pros:

• Increased scarcity of Eth:

As more Eth is burned, the supply of Eth in circulation decreases. This can lead to an increase in the price of Eth.

• Reduced inflation rate of Eth:

As more Eth is burned, the inflation rate will decrease. In my humble opinion this will make ETH a more attractive investment for long-term holders.

• Benefits Eth stakers:

Stakers earn rewards for staking their Eth, and as the burn rate increases, the rewards that stakers earn will also increase.

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Cons:

• Higher transaction fees:

As the demand for block space on the Ethereum network increases, and the supply of block space decreases, transaction fees can rise. This can make it more expensive to use the Ethereum network, which can hinder adoption.

• More difficult for new users to adopt Ethereum:

The high transaction fees can make it difficult for new users to adopt Ethereum. This is because they may be reluctant to pay high fees to use the network.