Ethereum reached its first full-week negative issuance in ETH history after the fee-burn mechanism came into effect. The main reason for such statistics is increased network load and increased fees.
EIP-1559 brings ETH the title of deflationary cryptocurrency
This week, Ethereum’s net issuance reached -59 ETH, equivalent to -$250,700 in dollar terms. Also, the miners who kept the network afloat raised $56 million in rewards, with the amount burned reaching almost $400 million in just one week. The Ethereum supply, which began to be curtailed with EIP-1559, is now equivalent to 712,000 ETH, which is just over $3 billion. As the Ethereum burn rate is constantly increasing, the net issuance rate of the largest altcoin is expected to last weeks or even months, increasing as time goes on. Negative issuance will likely make ETH a deflationary cryptocurrency that can attract more investors during times of accelerated inflation.
cryptocoin.com Check out our EIP-1559 article.
Ethereum awaits more investors?
With the post-pandemic inflation accelerating worldwide, Ethereum has become more preferable to hedge against inflation. The leading altcoin is one of the few cryptocurrencies with a fee burn mechanism that can quickly reduce the supply of cryptocurrencies during periods of high network load.
If we take a look at its price, ETH has been rising steadily since September and has already come a long way at 53%. As investors choose Ethereum to hedge inflation, it is in greater demand as a deflationary cryptocurrency.
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