The tokenomics and supply inflation of Ethereum (ETH) could have significant effects on the value of the cryptocurrency. By examining the market value and supply quantity of Ethereum, price changes can be better understood. Cryptocurrency indexes shed light on the effects of supply inflation on Ethereum. The price at which ETH would trade if it reached its all-time highest market value has been calculated.
Ethereum serves as a good example to understand the effects of supply and demand dynamics on the price, due to its unique tokenomic structure. According to the CRYPTOCAP index, Ethereum reached its highest market value of all time on November 10, 2021, with its value rising to $575.899 billion on that date. During the same period, the circulating supply of Ethereum was calculated to be approximately 118.06 million ETH.
When examining the supply inflation and economic impacts of Ethereum, as of the writing date of the article, Ethereum’s circulating supply is seen to be 118.619 million ETH. In addition, an expected supply inflation of 559,000 ETH (0.5%) is projected over the next two years.
Future price predictions also show the potential effects of this tokenomic structure. According to calculations, if Ethereum reaches its past highest market value of $575.899 billion, the price of ETH will be lower compared to its all-time high levels.
It is understood that for these predictions, Ethereum must see the same level of demand as in 2021. There is no guarantee that this level of demand will be seen again, and it is possible that higher demands will emerge in future periods. Investors are reminded to be aware of the high volatility of cryptocurrencies and to make their transactions based on their own research.