Ethereum’s annual inflation rate is 10% higher than that of Dogecoin

Although Ethereum’s annual inflation rate has been steadily dropping, it is still higher than the meme-inspired cryptocurrency Dogecoin. Interestingly, both digital currencies recorded significant gains in 2021. This was reported by Pinbold on the 3rd (local time).

According to data provided by the cryptocurrency intelligence platform Coinmetrics.io, as of June 2, Ethereum’s annual inflation rate of 4.2% was 10.52% higher than Dogecoin’s 3.8%.

Despite recording a decline, Ethereum’s inflation rate has come under scrutiny in recent years. In other words, the point is the debate over the number of changes in ETH issuance.

However, with the transition to Ethereum 2.0’s staking mechanism, the Ethereum inflation rate will drop significantly.

After the upgrade, Ethereum is expected to increase its total supply by close to 0%. In this case, it is more likely that the asset’s demand will outstrip the increase in supply over time, further increasing its value. With this upgrade, Ethereum falls into the same category as Bitcoin based on supply inflation.

In recent months, Ethereum has witnessed a boom in DeFi and NFT markets. On May 12, Ethereum hit an all-time high of $4,328.

[Dogecoin annual inflation rate due to steady decline]

Elsewhere, Dogecoin inflation rates have been steadily trending downward. In particular, the supply limit of 100 billion tokens was set at the same time as the launch of Meme Crypto.

However, DOGE developers abolished limited supply to encourage the use of tokens and prevent ‘hodling’. As a result, Dogecoin is currently receiving an infinite inflation supply of 5 billion DOGE per year.

The steady decline in DOGE inflation is consistent with existing fixed rewards divided by an increasing capital base. Interestingly, DOGE proponents believe that the token can be turned into a standard currency due to its design to increase supply at a set obsolete rate.

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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.