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Jamie Coutts highlights that the supply overhang which previously pressured alternative cryptocurrencies has now become manageable, marking a significant shift for the asset class.
He provides data showing that payouts to token holders after accounting for new supply were negative at -17% per year in 2021-22, but are projected to improve to -2.9% in 2026. According to Coutts, 4% of tokens will pay holders more than they dilute supply in 2026.
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Earlier this year, Coutts reported that crypto token supply growth declined from 26.5 percent in December 2021 to 3.3 percent, marking the lowest level recorded at the time (article). He has also identified NEAR Protocol as the leading Layer 1 network in terms of managing demand and supply in the current cycle (article). These developments inform his analysis of the changing token payout landscape.