Over the past four years, Ethereum’s supply growth has been around 1.5%. Initially, after the transition from PoW to PoS, Ethereum was deflationary; however, today, with low transaction fees, we can say it has a mildly inflationary structure. So, despite limited supply growth and institutional buying, why isn’t ETH’s price rising? One primary reason is the significant decline in ETH fees due to Layer 2 solutions driving down transaction costs. A second reason is that, despite spot ETF inflows, there are still occasional sharp sell-offs.
