By March 2022, over 119 million Ethereum tokens were issued and in active circulation - but it is expected new coins will not arrive at a fast pace. Although the cryptocurrency has an unlimited supply - unlike Bitcoin, of which there can only be 21 million tokens and not a single more - the Ethereum blockchain received an update in August 2021, EIP-1559, that both increased the block size needed to create new coins and destroyed (“burned”) any transactions fees, rather than send them to the original miners. This led to a decline in issuance, as mining Ethereum essentially was made less profitable. Issuance is expected to decline further when Ethereum 2.0 arrives.

Ethereum: a counter to inflation?

In a time when inflation rates became a big talking point, Ethereum received much social media attention in late 2021 for possibly being deflationary. This argument stems from August 2021, or “London Hard Fork”, upgrade in August 2021: Each transaction on the Ethereum network would entirely remove a portion of Ethereum from the total supply in circulation. On days of high transaction activity of Ethereum, for example, after a change in the price of Ethereum, this can effectively mean more coins are being destroyed than there are being created.

Ethereum supply to change after the upgrade to 2.0?

Experts state burning on a scale that the supply of Ethereum declines only happens on occasion, stating it acts more as a temporary slowdown of growth rather than an active attempt to continuously shrink supply. This could change, however, when Ethereum 2.0 arrives – or when Ethereum switches from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The general assumption for this is that staking rewards are generally lower than rewards for Proof-of-Work (mining), lowering the incentive for the creation of new coins. If usage – which some measure via the Ethereum gas price, or transaction fee per transaction – remains unchanged otherwise, this would lower the threshold for Ethereum to become deflationary.

Bitcoin is edging closer to reaching its finite, maximum supply, pushing its price up and making it harder to mine. As a rule of thumb, the fewer coins available to the general audience, the higher the value of the cryptocurrency becomes. No more mining is possible when a cryptocurrency reaches its maximum supply. The market price then reflects supply and demand. Bitcoin has a set limit of 21 million coins, the last of which is to be mined around the year 2140 according to a 2017 forecast - with the assumption that the rate of Bitcoin mining halves every 4 years. Why are there so many differences in crypto supply? Cryptocurrency developers can determine whether a coin should have a fixed limit, depending on the blockchain it utilizes or monetary strategies. Ethereum has no maximum supply, meaning miners can create and indefinitely extract this cryptocurrency. This is called an inflationary cryptocurrency, one that continuously inflates the supply. The idea is that the number of tokens in circulation keeps outpacing demand, decreasing overall value. Some coins limit the release of their (indefinite) supply or even destroy (burn) tokens. Such deflationary events took place with LUNA in 2022. The appeal of low-supply cryptocurrency for investors Crypto investors tend to be on the lookout for crypto with limited supply, ideally with low levels. After a token reaches maximum supply, the argument goes, the coin's supply becomes static - miners can no longer create new coins. The demand should continue to grow. A maximum cap, they hope, guarantees value gains. Not many such coins exist. DeFi platform AAVE is an example of a cryptocurrency with a max supply smaller than *** million.

Ethereum's price history suggests that that crypto was worth more in 2025 than during late 2021, although nowhere near the highest price recorded. Much like Bitcoin (BTC), the price of ETH went up in 2021 but for different reasons altogether: Ethereum, for instance, hit the news when a digital art piece was sold as the world’s most expensive NFT for over 38,000 ETH - or 69.3 million U.S. dollars. Unlike Bitcoin, of which the price growth was fueled by the IPO of the U.S.'s biggest crypto trader, Coinbase, the rally on Ethereum came from technological developments that caused much excitement among traders. First, the so-called “Berlin update” rolled out on the Ethereum network in April 2021, an update that would eventually lead to the Ethereum Merge in 2022 and reduced ETH gas prices - or reduced transaction fees. The collapse of FTX in late 2022, however, changed much for the cryptocurrency. As of June 30, 2025, Ethereum was worth 2,470.31 U.S. dollars - significantly less than the 4,400 U.S. dollars by the end of 2021. Ethereum’s future and the DeFi industry Price developments on Ethereum are difficult to predict but cannot be seen without the world of DeFi, or decentralized finance. This industry used technology to remove intermediaries between parties in a financial transaction. One example includes crypto wallets such as Coinbase Wallet that grew in popularity recently, with other examples including smart contractor Uniswap, Maker (responsible for stablecoin DAI), moneylender Dharma and market protocol Compound. Ethereum’s future developments are tied with this industry: Unlike Bitcoin and Ripple, Ethereum is technically not a currency but an open-source software platform for blockchain applications, with Ether being the cryptocurrency that is used inside the Ethereum network. Essentially, Ethereum facilitates DeFi, meaning that if DeFi does well, so does Ethereum. NFTs: the most well-known application of Ethereum NFTs or non-fungible tokens, grew nearly tenfold between 2018 and 2020, as can be seen in the market cap of NFTs worldwide. These digital blockchain assets can essentially function as a unique code connected to a digital file, allowing to distinguish the original file from any potential copies. This application is especially prominent in crypto art, although there are other applications: gaming, sports, and collectibles are other segments where NFT sales occur.

In May 2022, over ***** billion Terra Classic – the 1.0 version of LUNA - tokens were issued and went into active circulation in a few days. The cryptocurrency’s built-in algorithm triggered this correction following the coin’s significant price drop that month. Terra’s algorithm would "burn" (permanently destroying) LUNA so that it created something else instead: TerraUSD (UST), a stablecoin within the same blockchain. This automated system was meant to keep the price of UST level, potentially avoiding economic sentiment. Because of this initial promise of stability, Terra and its two coins initially played a significant role in crypto lending. The poster child of algorithmic stablecoins Up until May 2022, TerraUSD (UST) was the biggest stablecoin that functioned with an algorithm. At the end of April 2022, the market cap of TerraUSD – now TerraClassicUSD – was *** times larger than what it was one month later, comparable in size to Binance USD. Algorithmic stablecoins are relatively new and, as most stablecoins, have an external asset as collateral. Several of the biggest stablecoins in the world, for example, are backed by real-world U.S. dollar assets, such as cash or securities. Others – such as DAI – rely on the backing of other cryptocurrencies, such as Ethereum (ETH). TerraUSD had little to no backing, relying on a closed ecosystem. Reset or revival: The LUNA (2.0) aftermath Terra got reset on May 28, 2022: A new *** coin released – taking over the Terra (LUNA) name - whilst the "original" crypto was abandoned and became Terra Classic (LUNC). TerraUSD (UST) remained but became TerraClassicUSD (USTC). Several of the *** LUNA holders, however, hoped for a different solution, rather seeing the (***) coin’s supply be bought back by the company who issued them. The company would then burn them, hopefully restoring the price of the original LUNA. Do Kown, the CEO of the Terra system, stated his company did not have the funds for such a big undertaking. He instead shared a blockchain address on Twitter where individuals could burn their tokens themselves. By June 2022, roughly **** LUNA tokens were destroyed that way – a burn rate of roughly ***** percent compared to the overall circulating supply.

The “gas fee” paid for inclusion in the blockchain is analyzed in two parts. First, we consider how “effort” in terms of resources required to process and store a transaction turns into a “gas limit,” which, through a fee comprised of the “base” and “priority fee” in the current version of Ethereum, is converted into the cost paid by the user. We adhere closely to the Ethereum protocol to simplify the analysis and to constrain the design choices when considering “multidimensional gas.” Second, we assume that the “gas” price is given deus ex machina by a fractional Ornstein–Uhlenbeck process and evaluate various derivatives. These contracts can, for example, mitigate gas cost volatility. The ability to price and trade “forwards” in addition to the existing “spot” inclusion into the blockchain could enable users to hedge against future cost fluctuations. Overall, this article offers a comprehensive analysis of gas fee dynamics on the Ethereum blockchain, integrating supply-side constraints with demand-side modelling to enhance the predictability and stability of transaction costs.

The global Smart Contract Platform market, valued at $326.4 million in 2025, is projected to experience steady growth, driven by increasing adoption across diverse sectors. A Compound Annual Growth Rate (CAGR) of 4% indicates a consistent expansion throughout the forecast period (2025-2033). Key drivers include the rising need for secure and automated transactions, enhanced transparency and efficiency in various business processes, and the growing adoption of blockchain technology across industries like IT & Telecom, BFSI (Banking, Financial Services, and Insurance), and Logistics & Transportation. The demand for both cloud-based and on-premises solutions is fueling this growth, catering to different organizational needs and security preferences. While regulatory uncertainty and the complexity of implementing smart contracts pose some challenges, the overall market trajectory suggests a positive outlook. The significant presence of established tech giants like IBM and Microsoft, alongside numerous specialized blockchain companies, indicates a competitive landscape fostering innovation and adoption. Further market segmentation reveals a strong demand from North America and Europe, with Asia-Pacific also exhibiting significant potential for future growth. The market's growth is expected to accelerate as businesses increasingly recognize the benefits of smart contracts for streamlining operations and reducing costs. The ongoing evolution of blockchain technology, particularly in areas such as scalability and interoperability, will further propel market expansion. Specific applications in supply chain management, digital identity verification, and decentralized finance (DeFi) are expected to be key growth areas. The continued development of user-friendly interfaces and robust security protocols will be crucial in driving wider adoption across a broader range of organizations, from large enterprises to small and medium-sized businesses. Increased regulatory clarity and standardization could also significantly boost investor confidence and accelerate market growth in the coming years. Competitive pressures are likely to remain strong, prompting continuous innovation in areas such as platform performance, security, and ease of integration.

The Blockchain IoT market is experiencing explosive growth, projected to reach a substantial size driven by increasing adoption across diverse sectors. The compound annual growth rate (CAGR) of 43.31% from 2019 to 2024 indicates a rapidly expanding market, with significant potential for further expansion through 2033. This robust growth is fueled by several key factors. Firstly, the inherent security and transparency of blockchain technology are addressing critical vulnerabilities in IoT networks, making it increasingly attractive for applications involving sensitive data transmission and management. The rising demand for enhanced data security in sectors such as manufacturing, energy, and healthcare is a major driver. Secondly, smart contract functionalities enable automation and streamlined processes within IoT ecosystems, reducing operational costs and improving efficiency. Finally, the increasing number of connected devices and the surge in data generated by IoT systems necessitates robust and secure data management solutions, further bolstering the demand for blockchain-based IoT platforms. The market segmentation reveals a diversified landscape. Hardware, software, and infrastructure components form the core offering, supporting applications ranging from data security and smart contracts to asset tracking and management. The manufacturing, energy utility, transportation and logistics, building management, retail, and smart city sectors are key end-user segments, each demonstrating a growing need for secure and efficient data management solutions. Key players like Ethereum Foundation, IBM, and Microsoft are actively shaping the market, investing in research and development, and fostering partnerships to expand the adoption of blockchain IoT solutions. Geographic distribution shows strong growth across North America, Europe, and Asia, indicating global adoption of this transformative technology. While challenges remain, including scalability issues and regulatory uncertainties, the overall market outlook remains strongly positive, projecting significant growth in the coming years. This comprehensive report provides a detailed analysis of the Blockchain IoT market, encompassing historical data (2019-2024), current estimates (2025), and future forecasts (2025-2033). It offers invaluable insights into market size, growth drivers, challenges, emerging trends, and key players shaping the landscape of this rapidly evolving sector. The report utilizes a robust methodology, leveraging extensive primary and secondary research to deliver accurate and reliable market intelligence. The study period covers 2019-2033, with 2025 serving as the base and estimated year. Recent developments include: October 2022 - Samsung announced Knox Matrix, a new security solution that employs blockchain technology to safeguard an ecosystem of devices, during its developer conference (SDC). Samsung Knox is a security framework developed by Samsung that made significant progress in mobile devices., March 2022 - IoTeX collects information from potentially billions of IoT devices across the world and stores it on the blockchain to produce a trustworthy and independently verifiable representation of the state of these assets. It teamed with Google Cloud to accelerate global expansion.. Key drivers for this market are: Growing Need for IoT Security. Potential restraints include: Scalability, Processing Power, and Storage Issues. Notable trends are: Smart City End Users Segment is Expected to Hold Significant Market Share.

The global Smart Contract Development Services market is experiencing robust growth, driven by the increasing adoption of blockchain technology across diverse sectors. The market, estimated at $5 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 25% from 2025 to 2033. This significant expansion is fueled by several key factors. Firstly, the rising demand for secure and transparent transactions across industries like finance, healthcare, and supply chain management is bolstering the need for smart contract development expertise. Secondly, the growing sophistication of smart contract functionalities, enabling automation and efficiency improvements in various business processes, is further driving market growth. Thirdly, the emergence of innovative blockchain platforms and the expanding talent pool of skilled developers are contributing to the market's expansion. The market is segmented by blockchain type (public, private, others) and application (financial, government, insurance, healthcare, supply chain, others), offering diverse opportunities for specialized service providers. While regulatory uncertainties and the inherent complexities of smart contract development pose challenges, the overall market outlook remains exceptionally positive, suggesting significant growth potential in the coming years. The geographical distribution of the market shows a strong presence in North America and Europe, with Asia-Pacific emerging as a rapidly growing region due to increasing technological adoption and investment in blockchain infrastructure. Leading market players are focusing on strategic partnerships, acquisitions, and technological advancements to maintain their competitive edge in this dynamic market. The continuous evolution of blockchain technologies and the expanding use cases for smart contracts promise sustained market expansion. Increased government support for blockchain initiatives and ongoing research into improving smart contract security and scalability are further contributing factors to the positive market trajectory. The ability to automate complex processes, reduce transaction costs, and enhance data security through smart contracts are key drivers attracting businesses across diverse sectors. Competition amongst service providers is intensifying, necessitating continuous innovation in development methodologies, expertise in various blockchain platforms, and a focus on delivering secure, reliable, and efficient smart contract solutions. The long-term forecast anticipates a continued upward trend, driven by ongoing technological advancements and increasing global adoption of smart contracts.

The market cap of the top 10 stablecoin initially multiplied over time, reaching a combined value of over *** billion USD in May 2025. Note this value does not include TerraUSD (UST), the algorithmic stablecoin tied to the LUNA crypto which declined severely in May 2022. Up to then, estimates reveal that the market cap had more than tripled within five months - likely following growing interest worldwide in cryptocurrencies, after sudden price spikes in a coin like Dogecoin (DOGE). Stability above all, or what does a stablecoin do? Stablecoins are cryptocurrencies - like the commonly known Bitcoin (BTC) and Ethereum (ETH) - but their value is determined differently. Whilst the price of Bitcoin mainly follows supply - how many coins are being mined or are available to purchase - and demand - how many investors want to buy the coin - stablecoins are synthetically connected to the price of an altogether different asset. Tether's USDT, for instance, is connected to the price development of the U.S. dollar (USD): if the U.S. dollar falls in the FX market, so does the USDT. Compare this to the "regular" price history of a cryptocurrency like Ripple (XRP) and stablecoins reveal themselves to be a relatively less volatile digital currency to either use or invest in than their counterparts in the free market. A test ground for digital payments This stability of these particular cryptocurrencies is important for two areas in digital payments that do not prefer volatility. For instance, these coins are a popular choice within the world of Decentralized Finance or DeFi - an online financial market without the supervision of central bank that relies on cryptocurrencies for payments and loans. Because of that reliance, it is a market that can rapidly change in size due to price fluctuations or changing transaction fees of certain cryptocurrencies - something that is less likely to occur when using stablecoins. Additionally, stablecoins are considered the inspiration for so-called CBDC or Central Bank Digital Currencies - such as China's e-CNY currency or the "digital euro" that is being researched in the EU-27. In terms of how advanced countries worldwide are into researching their own cryptocurrency, China ranked third in 2020, behind Cambodia, and The Bahamas.

Ripple - or XRP - prices surged in 2021, but went down significantly as 2022 progressed. As of June 30, 2025, one XRP token was worth 2.19 U.S. dollars. Ethereum's price, for example, kept on reaching new all-time highs, a feat not performed by XRP. Indeed, XRP's more price spikes followed relatively late - only occurring in early 2021, against late 2020 for most other cryptos - after the US SEC filed a legal complaint against Ripple in November 2020. This legal action caused the XRP price to plummet from around 0.70 U.S. dollars to 0.20 U.S. dollars. Ripple versus XRP: two become one Technically speaking, Ripple is not a cryptocurrency. Renamed from a protocol called OpenCoin in 2013, Ripple facilitates open-source payments. XRP, on the other hand, is the cryptocurrency that runs on this network. In that sense, Ripple and XRP have a similar symbiosis to each other like the Ethereum network and its cryptocurrency Ether. Unlike Ethereum - whose price changes are connected to the world of Decentralized Finance or DeFI - Ripple/XRP mostly looks at developments in cross-border payments for companies. In 2020, companies worldwide began to favor fintech solutions for future B2B solutions and, in a way, Ripple is an extension of that. What affects the price of Ripple? Ripple is mostly active in Southeast Asia - a region with a splintered payment landscape and that heavily investigates its own types of state-issued cryptocurrency to make cross-border payments a lot easier. Price spikes tend to follow news on this topic in this specific region. In 2019, for example, the XRP price grew after Japan and South Korea began testing to reduce time and costs for transferring international funds between the two countries. In March 2021, Ripple announced that it had agreed to acquire 40 percent of Malaysian cross-border payments firm Tranglo to meet growing demand in Southeast Asia.