Ethereum Supply Grows as Burn Rate Lags Behind

Ethereum's supply has grown by 1.6 million ETH since the 2022 Merge, with validators currently minting about 2,600 new ETH daily. However, the burn rate has lagged far behind, making the network inflationary again since April 2024. As of October 5, 2026, there are approximately 122.1 million ETH in circulation, up from 120.5 million at the time of the Merge.

The Dencun upgrade in March 2024 slashed Layer 2 fees by over 90%, significantly reducing the burn rate. Despite the Fusaka upgrade in December 2025, which imposed a minimum price for the data layer 2s can post, the supply has continued to rise. This shift has compromised Ethereum's earlier promise of 'ultrasound money,' where the belief was that ETH would continuously become scarcer.

ETH is currently trading at around $2,724, reflecting a 2.7% increase over the past week and a 7.8% rise over the last 30 days. However, it is still down 39% from a year ago and approximately 45% below its all-time high of $4,946 reached in August 2025. While the annual supply growth of less than 1% is relatively low compared with other cryptocurrencies, the inflationary aspect has eroded investor confidence.

The transition to an inflationary model has led investors to reevaluate Ethereum's value proposition more critically. The network's supply dynamics are influenced by the balance between issuance and burn rates, with the latter heavily dependent on transaction activity. Until network usage increases and consistently burns more than 2,600 ETH a day, the question remains whether Ethereum will remain inflationary for the long term.