In the study by Australian university researchers, ‘Is Bitcoin the best store of value in the cryptocurrency industry?’ and ‘Is Ethereum on its way to becoming the world’s first deflationary currency?’ questions were addressed.
18 November study by Ester Félez-Viñas of Sydney Research University, Sean Foley of Macquarie University, Jonathen Carlsen of the University of Western Australia and Jiri Svec of the University of Sydney, He suggests why the EIP-1559 update turns Ethereum into a better store of value.
According to the research, Ethereum’s Some of the transaction fees incurred on the network with the EIP-1559 update started to burn. With the update circulating to date More than 1 million ethereum from 118,583,580 supplies was burned. Sometimes produced daily with the EIP-1559 update. Transaction fees amounting to more than half of 12,000 ethereum are burned appeared. Researchers predict that interest in Ethereum is increasing due to the demand for its strong decentralized finance ecosystem, and more and more ethereum will be burned day by day.
Researchers say that Ethereum is already more than Bitcoin. less inflationary says it is.
When the Ethereum generation rate is spread over the year since the EIP-1559 update, it is seen that the expected annual growth in Ethereum supply is 0.98%, while this rate is 1.99% in Bitcoin and 2 times the growth rate of Ethereum in the same period.
Researchers say that Ethereum provides better inflation protection than Bitcoin. Ethereum is a better store of value than Bitcoin in the long run. is thinking.