The craze in meme coins like the PEPE coin has peaked the burns in Ethereum, which has already entered the deflationary era. The interesting thing is that despite the ever-increasing deflation, ETH coin still hasn’t come out of the bear market. So is that a risk or an opportunity?
We are experiencing a similar frenzy created by dog-themed meme altcoins such as DOGE and SHIB in recent years for the PEPE coin. The monkey-themed craze that emerged a few weeks ago has really turned the field into a monkey. PEPE, which gained nearly 3000 percent in value, had a striking effect on ETH while making its investors millionaires. Of course, not only PEPE, but also other meme coins that accompanied it, CGPT and WOJAK, also caused more ETH burns over high gas fees.
PEPE mania brings ETH burning to record
So much so that in the 18 days since the PEPE coin was launched on April 18, 2023, the ETH gas fee has increased by 50 percent. At one point, the median gas cost even exceeded 150 gwei on the 1-minute chart.
Scimitar Capital analyst Alex shared the results of 413 thousand 283 Uniswap transactions he downloaded from DuneAlaytcis and wrote that the amount of ETH gas burned by PEPE investors in the last three weeks alone is 5 thousand 300 ETH (worth $ 10 million). Let’s make a reminder here: 1 gwei is equivalent to one billionth of 1 ETH.
1/5 of the ETH burned in 33 weeks was burned in a week
Again, according to Ultrasound Money’s data, the amount of ETH burned in the last week alone is 33 thousand 200. In other words, it corresponds to more than one-fifth of the total 154 thousand 154 ETH burned in the 33 weeks since the merger.
North Rock Digital also shared a tweet on the subject, stating that if the current daily burn continues, ETH will be subject to an extra deflation of 2 percent annually. Noting that this situation would of course be unsustainable for ETH, which is in a bear market, the organization ended by asking a very interesting question: What if the bull comes?!..
The process of the last days, which has been very confusing, starts with exactly this question. In other words, while all this is happening, that is, while creating deflation in a way that ETH has never seen in its history, Ethereum, on the contrary, is still dragged in a bear market.
For the continuation of the article, a rare deflation in the history of ETH!