Ether is heading toward a deflationary future, according to Citigroup. In a research report, Citi noted the cryptocurrency’s volatility dropped to historic lows in the wake of the Merge, which moved the Ethereum blockchain to a more energy-efficient proof-of-stake consensus mechanism. That resulted in net issuance of ether falling close to zero, whereas before the Merge, annual inflation of supply was around 4.2%, the report said.
