BTC $62,580.80 -1.77%
ETH $1,865.63 -1.23%
BNB $603.41 -1.12%
XRP $1.00 -0.40%
SOL $75.25 -1.21%
TRX $0.3323 -0.56%
DOGE $0.0693 -1.18%
ADA $0.1792 -2.63%
BCH $202.98 -5.09%
LINK $8.81 -0.04%
HYPE $56.17 -2.85%
AAVE $85.78 -2.37%
SUI $0.6772 -1.97%
XLM $0.1598 -0.23%
ZEC $484.25 -1.32%
BTC $62,580.80 -1.77%
ETH $1,865.63 -1.23%
BNB $603.41 -1.12%
XRP $1.00 -0.40%
SOL $75.25 -1.21%
TRX $0.3323 -0.56%
DOGE $0.0693 -1.18%
ADA $0.1792 -2.63%
BCH $202.98 -5.09%
LINK $8.81 -0.04%
HYPE $56.17 -2.85%
AAVE $85.78 -2.37%
SUI $0.6772 -1.97%
XLM $0.1598 -0.23%
ZEC $484.25 -1.32%

isms

All
Article
Flash

Gray Research Director: ETH and SOL may face supply contraction, and the reduction of inflation mechanisms will strengthen token scarcity

Grayscale Research Director Zach Pandl stated that the two major blockchain networks, Ethereum (ETH) and Solana (SOL), are considering adjusting their token economic models to enhance asset scarcity by reducing future token supply growth through lowering annual inflation rates. As important native assets supporting stablecoins and tokenized asset ecosystems, the prices of ETH and SOL are primarily determined by supply and demand dynamics. If the relevant code upgrade proposals are approved, under unchanged conditions, lower supply growth may provide support for token prices.According to Grayscale's analysis, if the relevant adjustments are implemented, the supply inflation rates of BTC, ETH, and SOL will continue to decline over the next five years. By the end of 2031, the annual inflation rates for Bitcoin and Ethereum are expected to be around 0.4%, and Solana around 1.1%, which is lower than gold's annual supply growth rate of about 1.8% and the U.S. CPI inflation level of about 3.3%. Currently, these token economic adjustments are still in the community discussion phase. Among them, the Solana-related proposal has gained broader support and has a higher likelihood of implementation; the Ethereum proposal still requires further discussion.If the adjustments are implemented, staking users may face reduced token rewards, as part of the staking income comes from the issuance of new tokens. However, due to the decline in the growth rate of circulating supply, the scarcity value of the tokens may increase, potentially providing price support. For ETH and SOL holders who do not participate in staking, they may benefit directly; the final returns for stakers will depend on the balance between the decrease in rewards and the increase in prices. Zach Pandl concluded that ETH and SOL are becoming important digital commodities supporting stablecoins and the tokenization of real assets, and the economic model adjustments aimed at reducing inflation may further strengthen their scarcity attributes.

FATF: Peer-to-peer transfers of stablecoins have become a major money laundering risk, recommending issuers to introduce freezing and blacklisting mechanisms

The global anti-money laundering organization Financial Action Task Force (FATF) pointed out in its latest report that stablecoin peer-to-peer (P2P) transfers have become a key source of money laundering risk in the crypto ecosystem, especially when users trade directly through unmanaged wallets, making it more difficult to track and regulate related activities due to the lack of regulated intermediaries.FATF stated that stablecoins have now become the most commonly used virtual assets in illegal crypto transactions. According to Chainalysis data, approximately 84% of the $154 billion in illegal crypto transactions in 2025 involved stablecoins. The report recommends that jurisdictions require stablecoin issuers to have the technical capability to freeze, destroy, or blacklist assets involving suspicious addresses when necessary, and to embed compliance features such as allow-lists and deny-lists in smart contracts.FATF noted that compared to the highly volatile Bitcoin and Ethereum, stablecoins like Tether (USDT) and USD Coin (USDC) are increasingly being used by criminal networks for fund transfers and money laundering activities due to their price stability, high liquidity, and ease of cross-border transfer. Additionally, the report mentioned that North Korean hacker groups and entities linked to Iran are using stablecoins to launder proceeds from cybercrime and are converting funds into fiat currency through over-the-counter traders or peer-to-peer platforms.FATF calls for strengthened regulation of stablecoin issuers and encourages the broader adoption of blockchain analysis tools and anti-money laundering measures such as the "travel rule" within the crypto industry.
app_icon
ChainCatcher Building the Web3 world with innovations.