{"id":43556,"date":"2025-08-22T11:31:30","date_gmt":"2025-08-22T11:31:30","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=43556"},"modified":"2025-08-22T11:31:30","modified_gmt":"2025-08-22T11:31:30","slug":"crypto-has-an-inflation-problem","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=43556","title":{"rendered":"Crypto Has An Inflation Problem"},"content":{"rendered":"<div>\n<p><figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"585\" src=\"https:\/\/contributor-assets.benzinga.com\/wp-content\/uploads\/2025\/08\/22095253\/AI_image_token_inflation_MS_designer-1024x585.jpeg\" alt=\"\" class=\"wp-image-17790\" srcset=\"https:\/\/contributor-assets.benzinga.com\/wp-content\/uploads\/2025\/08\/22095253\/AI_image_token_inflation_MS_designer-1024x585.jpeg 1024w,https:\/\/contributor-assets.benzinga.com\/wp-content\/uploads\/2025\/08\/22095253\/AI_image_token_inflation_MS_designer-300x172.jpeg 300w,https:\/\/contributor-assets.benzinga.com\/wp-content\/uploads\/2025\/08\/22095253\/AI_image_token_inflation_MS_designer-768x439.jpeg 768w,https:\/\/contributor-assets.benzinga.com\/wp-content\/uploads\/2025\/08\/22095253\/AI_image_token_inflation_MS_designer.jpeg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"><\/figure>\n<\/p>\n<p><em>Credit: Image generated by AI<\/em><\/p>\n<p>\u2018Token bloat\u2019 is back in the news with Ethereum taking heat for letting its Layer-2 networks issue tokens without regard for transaction volumes.<\/p>\n<p>There\u2019s a name for it when you top-up a money supply to accommodate more users: inflation. Crypto experts say it\u2019s devaluing tokens while destabilizing the blockchains they live on.<\/p>\n<p>Ethereum took a big deflationary step in 2022 when it moved to proof-of-stake (PoS). Now the issue has flared up again, and competitors see an opportunity. Solana, Celestia, and NEAR are all moving to tame token bloat and close the growing gap between prices and usage on their networks.<\/p>\n<p>Shrinking token supply will enhance asset value, improve network stability, attract investors \u2013 and ease speculative selling pressure \u2013\u00a0or so the thinking goes.<\/p>\n<p>Is inflation fighting the key to blockchain leadership?<\/p>\n<h2 class=\"wp-block-heading\">When token issuance goes unchecked<\/h2>\n<p>Crypto VC Nic Carter\u00a0<a href=\"https:\/\/x.com\/nic__carter\/status\/1905722880484348104?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1905722880484348104%7Ctwgr%5E8922a4e8c8060b6d51dc466a7454a383c5844d1c%7Ctwcon%5Es1_c10&amp;ref_url=https%3A%2F%2Fwww.techopedia.com%2Fcrypto-inflation-problem\">took to X<\/a> recently to lambaste the\u00a0Ethereum\u00a0community&#8217;s passive acceptance of unchecked token creation on Layer-2 networks. ETH, he said, was &#8220;being buried in an avalanche of its own tokens. Killed by its own hand.&#8221;<\/p>\n<p>Carter was replying to a bleak assessment by Lekker Capital founder Quinn Thompson, who posted that Ethereum was &#8220;completely dead&#8221; in investment terms.<\/p>\n<p>Thompson detailed the number two blockchain\u2019s declining transaction activity, reduced user growth, and sliding revenues. Regardless of its utility as a development platform, he believed the investment case for Ethereum had evaporated.<\/p>\n<p>In light of ETH&#8217;s recent rally, that may seem overheated. But the criticisms clearly struck a nerve.<\/p>\n<h2 class=\"wp-block-heading\">What causes token bloat?<\/h2>\n<p>Token inflation happens when an issuer increases the supply of tokens in the market. It literally means creating more out of thin air \u2013 something crypto enthusiasts &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/markets\/cryptocurrency\/25\/08\/47278404\/crypto-has-an-inflation-problem\" alt=\"Crypto\" has an inflation problem>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Credit: Image generated by AI \u2018Token bloat\u2019 is back in the news with Ethereum taking heat for letting its Layer-2 networks issue tokens without regard for transaction volumes. There\u2019s a name for it when you top-up a money supply to accommodate more users: inflation. Crypto experts say it\u2019s devaluing tokens while destabilizing the blockchains they [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-43556","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43556"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43556\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}