Ethereum Supply Turns Disinflationary as DATs Buy and Stake ETH

Over the past year, Ethereum has seen supply become disinflationary, with ETH DATs (digital asset treasury firms) helping absorb tokens through purchases and staking (locking crypto to earn rewards).

ETH

Summary

Ethereum’s supply has been disinflationary over the past year, according to the post, with the trend amplified by ETH DATs (digital asset treasury firms) that are acquiring and staking ETH. Staking reduces liquid circulating supply by locking tokens into the Ethereum network to help secure the blockchain and earn rewards, which can tighten available supply when combined with corporate accumulation.

Terms & Concepts
  • Disinflationary supply: A supply trend in which token issuance is lower than the rate at which supply is expanding, reducing net growth over time.
  • Staking: Locking crypto into a blockchain network to help validate transactions and earn rewards.
  • Digital asset treasury firms (DATs): Companies that hold crypto on their balance sheets as treasury assets.