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Ethereum tokenomics and token value: a quantitative analysis of on-chain fundamentals (2021–2025)

This quantitative research provides an empirical analysis of Ethereum’s tokenomics following the transition to Proof-of-Stake. The Frontiers editorial office co

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Abstract

This quantitative research provides an empirical analysis of Ethereum’s tokenomics following the transition to Proof-of-Stake. The Frontiers editorial office compiles on-chain data to assess how fee-burn mechanisms (EIP-1559), staking yields, and layer-2 adoption have affected the value and supply dynamics of Ether. The study utilizes econometric methods to correlate on-chain activity with token price performance over a four-year window. The findings indicate that Ethereum’s shift to a deflationary-prone supply model has altered the asset’s investment profile, effectively turning it into a yield-bearing ‘digital bond’ for the network. The paper is significant for its rigorous approach to on-chain fundamental analysis, providing clear evidence of how protocol upgrades and network utility directly influence the underlying economics of a major base-layer blockchain. Authors: Frontiers in Blockchain Editorial Office Publication: Academic Paper Publication date: 2026-01-01

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Key findings

  • The EIP-1559 fee-burn mechanism significantly impacts ETH supply dynamics.
  • Proof-of-Stake has transformed ETH from a purely speculative asset into a yield-bearing instrument.
  • On-chain activity is a robust predictor of long-term token value trends.
  • Layer-2 scaling solutions have significantly influenced base-layer demand and supply behavior.

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Citation

Frontiers in Blockchain Editorial Office (2026). Ethereum tokenomics and token value: a quantitative analysis of on-chain fundamentals (2021–2025). Academic Paper. https://www.frontiersin.org/journals/blockchain/articles/10.3389/fbloc.2026.1817622/full
Canonical knowledge ID: research:ethereum-tokenomics-and-token-value-a-quantitative-analysis-of-on-chain-fundamentals-2021-2025