Ethereum’s Supply: Are We Seeing Inflation Again at $2,700?

Ethereum validators mint thousands of new coins every single day, and the mechanism built to offset that creation has quietly stopped keeping pace. What changed, and what does it mean for anyone holding ETH right now?

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For years, Ethereum (CRYPTO: ETH) holders were assured that ETH supply would shrink over time. However, that narrative has changed: the network now produces more ETH than it burns, making Ethereum inflationary again. As of October 5, 2026, approximately 122.1 million ETH are in circulation, about 1.6 million more than the 120.5 million at the time of the Merge in September 2022.

Many investors were attracted to Ethereum with the expectation of a dwindling supply. While Ethereum has no cap on total supply, the decrease in ETH was only sustainable when the network was heavily utilized.

Currently, ETH is trading at around $2,724 on October 5, reflecting a 2.7% increase over the past week and a 7.8% rise over the last 30 days. However, despite these recent gains, ETH is still down 39% from a year ago and approximately 45% below its all-time high of $4,946 reached in August 2025. So, is Ethereum inflationary again, and could this increased supply explain its drop over the past year?