DeFi researcher Ignas said network demand and the Ethereum community’s efforts to build it will shape whether fees can support ETH deflation if scaling reduces transaction costs.
His remarks followed Ethereum co-founder Vitalik Buterin’s call for greater emphasis on Ether’s role as a store of value, which Buterin linked to the network’s resilience. Ignas said that case can coexist with base-layer fee revenue contributing to ETH deflation.
Ignas pointed to Ethereum’s native staking yield and privacy features planned for the network. He also said Ether can serve as collateral within Ethereum, while Bitcoin (BTC) and ZEC holders may need wrapped versions of their assets or rely on banks or centralized exchanges to borrow against them.
Bitwise data cited in EconoTimes’ earlier coverage of Ethereum staking yields put priority fees and maximal extractable value at 0.10 percentage points of third-quarter yield, against 2.53 percentage points from protocol-issued rewards. The figures show how lower fees can affect stakers’ transaction-related income.
