Introduction:

Ethereum, the top altcoin by market value, plays a crucial role in the Web3 world. Many popular protocols run on its network, making it highly valuable. However, recent developments have brought disappointment to Ethereum enthusiasts.

Inflation Challenges:

Initially, hopes were high for Ethereum to become deflationary after the Merge, which would eliminate miner rewards. However, the recent Dencun upgrade changed this trajectory. Data shows that the circulating supply of Ethereum increased after the upgrade, marking the beginning of an inflationary period. This shift contradicts Ethereum's previous status as a deflationary asset, leading to concerns among investors.

Ethereum's Future:

Aside from inflation concerns, Ethereum faces legal challenges. Entities like the Ethereum Foundation, Uniswap, ConsenSys, and Robinhood are under simultaneous legal scrutiny, with the SEC targeting the Ethereum ecosystem. While falling transaction fees could be seen as positive, they have contributed to the inflationary trend. Despite efforts to reduce circulating Ether through fee burning, the Dencun update has made transaction fees cheaper, leading to a reversal of this process. Unless transaction volume surges significantly, Ethereum may continue to face inflationary pressures.

Conclusion:

While Ethereum's future may seem uncertain due to inflationary trends and legal challenges, increased network activity could mitigate these issues. However, the days of Ethereum being viewed as a deflationary asset may be behind us. Despite this, if Ethereum can maintain interest and activity, it may weather these challenges and remain a key player in the crypto space.