Ethereum after the London Hard Fork: Despite the alleged deflation, the network remains inflationary despite the alleged deflation

Ethereum after the London Hard Fork: Despite the alleged deflation, the network remains inflationary despite the alleged deflation

Three years after the Ethereum Hard Fork, the network shows an inflationary tendency, although the update originally aimed to dampen the growth of offer. The measures initiated by the HARD FORK should limit the emission of new ether and enable deflationary development. However, the reality is that Ethereum continues to face an inflationary monetary policy that does not meet the high expectations.

The planned deflationary mechanisms were at the center of the discussions about the London upgrade. The aim was to adapt the TOKENOMICS from Ethereum so that Ether's offer grows more slowly in order to potentially promote an increase in value. Despite this measure, the results did not occur as many users and investors expected.

This development has led to an intensive discussion within the crypto community. Critics argue that the original goal of converting Ethereum into a deflationary currency has not yet been achieved and that alternative solutions have to be found to combat inflation.

In the current debate about inflation in the Ethereum network, it remains to be seen how future updates and adjustments to the protocol will react to it. It is clear that developments in the Ethereum ecosystem are observed closely, especially since they can not only have an impact on the price of ether, but also on the entire blockchain ecosystem.