Ethereum Merge Boosts Cryptocurrency's Hard-Money Appeal.

By The Exchange Team

Ethereum received praise 2 weeks ago for smoothly completing its much-hyped Merge, a transition to a "proof-of-stake" blockchain system.

Now, the second-largest blockchain looks to be delivering on another promise of the Merge: increased inflation-resistance.

The annualized net issuance rate of Ethereum's native cryptocurrency, ether (ETH), has fallen to a range of 0% to 0.7% in the days since the Merge.

Previously, it was 3.5%. Net issuance rate is the new supply divided by the current supply.

Ethereum's decreased issuance rate may help boost its appeal among investors in a world where central banks are trying to curb inflation.

The drop in Ethereum's inflation rate is due to 2 factors: a reduction in fresh issuance due to a change in the core blockchain technology and "EIP 1559," a mechanism that "burns" or eliminates from circulation transaction fees.

Before the Merge, ether's proof-of-work (PoW) mining rewards were roughly 13,000 ETH each day.