Is $ETH lagging behind or not? Recent data shows that ETH has returned to the inflation branch. And it will be even more inflated in March recently due to the low number of ETH being burned compared to the number of new ETH issued, which goes against the initial expectations of the merge event, a turning point in the transition from proof of work to proof of stake.
Theoretically, when switching to proof of stake, investors on the network will have to pay gas fees, most of which will be burned. If the network operates more, the amount of ETH burned will increase, which will help #eth increase in price.
However, it shows the opposite due to the upgrade reducing gas fees leading to a simplified amount of ETH being burned, combined with the Ethereum Foundation continuously dumping ETH, causing this coin to cool down.
Comparing branch $ETH and $SOL sec is clear.
However, objectively speaking, the current inflation of ETH is still much lower than that of BTC.
You see, the Pectra upgrade will bring ETH back into the price increase race because when transaction fees decrease, it will attract more developers, creating many new projects that increase the demand for ETH. According to crypto expert Amr Taha, the supply of ETH available for immediate sale has been reduced, making it difficult for ETH's price to drop further. If demand remains stable or increases, and supply becomes scarce, ETH could rebound. Donald Trump's son also said this is a great time to buy ETH.
The bulls believe that when the crowd is frustrated, that is when surprises will happen....
What do you think? Please let me know!