Ethereum’s price has been a bit shaky lately, but its supply is on the rise. This might sound bad, but it’s actually a sign of the network’s growing activity.
Why is Ethereum’s Supply Increasing?
The main reason for the increase is Ethereum’s shift to proof-of-stake (PoS). This means that people are now “staking” their ETH to help secure the network. In return, they get rewards in the form of new ETH.
Think of it like this: more people are joining the network and getting paid in ETH, which increases the total supply.
What Does This Mean for Ethereum’s Price?
It’s not all doom and gloom. While the increased supply might seem like a bad thing, it’s actually a sign of the network’s growing popularity.
The price of ETH has actually been rising recently, and some analysts believe it could reach $3,000 soon.
What’s Next for Ethereum?
Overall, the increase in Ethereum’s supply is a sign of its growing adoption. While it might not always be a good thing for the price, it’s a positive sign for the network’s long-term health.
