That is a nice analysis. I do not follow the discussion and what is happening, so getting updated on things from the authors that I follow is really awesome. There seems to be a lot of ETH still liquid, and there are still more being created, is the risk of low liquidity already a concern this early on?
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Ethereum became deflationary last year for the first time (after switching to POS), which means they burn more ETH than they issue. There is still a significant amount of ETH liquid, but that can change seriously over time, with all mechanics converging toward less liquid ETH right now.
That is what I was unfamiliar with. How are they burning ETH; is it required for staking? And wouldn't the introduction of ETFs lessen this burning since they are just going to be idle in the exchanges?
I'll need to check myself further. Since it's POS, I suppose they might have like us, a null account. In fact, I'm almost certain of that, since there is one of BSC and Polygon, and they are EVMs. Now, I don't know if there is some sort of automated mechanism that burns ETH, or it's purely voluntary.
Gotcha. A null account would be the logical solution.