Withers and custom mobs no longer drop diamonds on EMC. If diamond prices have been inflated, it's due to reduced supply. I don't know much about other things, though.
Yea, I remember diamonds being 80-100 rupees a piece back when I stopped playing regularly, saw on a thread today where someone said diamonds were around 50 rupees each. To be fair, netherite definitely reduced their usefulness
Actually, you need diamond tools to upgrade to netherite and diamonds for the smithing template. Nonetheless, it is worth noting that diamonds became way more common after 1.18, although last I knew deepslate diamond ore was still somewhat more expensive than the stone-based diamond ore.
The decrease in player activity has been drastic lately, meaning that even if the overall supply of rupees has increased, most have been left in dormant accounts. Tied also to a shrinking economy
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