#ETH Issuance Far Outpaces Burn Rate in 2024
Ethereum's inflation rate has hit a two-year high of 0.74%.
=> This means that the amount of Ethereum in circulation is growing rapidly, rather than decreasing as promised in Ethereum's previous ultrasound money strategy.
Part of the reason is that L2 solutions improve transaction speeds and reduce fees, which have reduced the amount of#Ethereumburned when making transactions.
Burning has previously been a key part of Ethereum's strategy to reduce inflation and potentially become deflationary.
However, due to limited burning, the amount of Ethereum being created is exceeding the amount being burned, leading to high inflation.
