@leexiuling22
The full transition to Ethereum 2.0, now complete with the shift to Proof-of-Stake (PoS), significantly impacts ETH’s value. Staking locks up a substantial portion of ETH supply—over 28 million ETH (23% of total supply) as of early 2025—reducing circulating supply and creating upward price pressure. Validators earn staking rewards (currently ~3-5% APR), incentivizing long-term holding over selling, further supporting value. Inflation has dropped sharply from ~4.5% under Proof-of-Work to near-zero or deflationary levels, thanks to EIP-1559’s fee burning (e.g., ~2.5M ETH burned by March 2025). With lower issuance (0.5-1M ETH/year) and potential deflation, ETH’s scarcity increases, likely boosting its value. However, risks like staking centralization or market volatility could temper gains. Overall, reduced supply and inflation favor a bullish outlook for ETH’s price.
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