Bitcoin
BTC$41 312.94

-1.79%

Ethereum
ETH$3 057.90

-4.13%

Tether
USDT$1.000957

0.03%

Binance Coin
BNB$454.95

-4.03%

Cardano
ADA$1.37

-11.53%

USD Coin
USDC$0.999548

-0.04%

Ethereum sees first consecutive week of deflationary issuance


02 Nov 2021

#Ethereum

More than $65 million worth of ETH is currently being burnt daily by the Ethereum network. The Ethereum network has seen its first consecutive week of negative supply issuance as bubbling markets drive persistently high transaction fees. With the highly anticipated London upgrade introducing a burn mechanism into Ethereum’s fee market in early August, a small quantity of Ether (ETH) has since been destroyed with every transaction executed on the network. With gas prices sustaining at high levels, Ethereum has seen seven consecutive days of deflationary issuance for the network, meaning that more ETH has been removed from supply than created through mining. In order for Ethereum to consistently produce deflationary blocks, gas prices must consistently remain roughly above 150 gwei.

EthHub co-founder Anthony Sassano commented that deflationary Ethereum was not expected until “the merge” — when the Ethereum blockchain is set to merge with Ethereum 2.0’s Beacon Chain, which is currently expected to occur during the first half of 2022.

According to the Ultrasound.Money fee burning tracker, around 15,000 ETH ($65 million at current prices) is being burnt daily. When factoring in the rate of new ETH being created, Watch the Burn reports a weekly net issuance of minus 8,034 ETH (roughly $34 million) at the time of writing. Since the London upgrade, more than 724,400 ETH worth $3.1 billion has been permanently destroyed. According to Etherscan, the average cost of an ERC-20 token transfer is now a painful $46. Doing something a little more complex such as providing liquidity to a decentralized finance protocol or making a token swap on Uniswap can cost as much as $140 at the moment.

Sassano emphasized that the upgrade has not increased gas prices but has made them more predictable. “Contrary to popular belief, EIP-1559 has not increased gas prices and has in fact helped considerably with spikes in demand (such as during hyped-up NFT mints) which has led to a smoother network overall,” he said.

According to the Bankless Ethereum Q3 network report, transaction value settled for July to September this year was a whopping $536.5 billion, an increase of almost 400% since the same period last year.

Despite Ethereum’s first deflationary week, many Ether advocates are seeking to encourage users to migrate to transacting using its emerging layer-two ecosystem. According to L2beat, there is a record $4.68 billion in total value locked (TVL) across the various layer-two networks. This TVL has surged almost 500% over the past two months as Ethereum users increasingly seek out ways to avoid those excruciating transaction fees.


Related

$33.5 billion worth of ETH ‘trapped’ in largest Ethereum contract
$33.5 billion worth of ETH ‘trapped’ in largest Ethereum contract
Eth2 devs call on to community to help test out the merge
Eth2 devs call on to community to help test out the merge
Stocks lurch pressured crypto on Friday
Stocks lurch pressured crypto on Friday
Traders expect Ethereum price to drop further ahead of Friday’s $550M options expiry
Traders expect Ethereum price to drop further ahead of Friday’s $550M options expiry
Cryptocurrencies in FinTech
Cryptocurrencies in FinTech
Traders watch for a trend reversal after Ethereum price drops to $4,100
Traders watch for a trend reversal after Ethereum price drops to $4,100
Bitcoin and Ether increasingly move in line with stock market laws
Bitcoin and Ether increasingly move in line with stock market laws
Rocket Pool Eth2 staking service launches, hits stage two cap in 45 seconds
Rocket Pool Eth2 staking service launches, hits stage two cap in 45 seconds
Ethereum Name Service’s new token already has a fully diluted cap of $3.1B
Ethereum Name Service’s new token already has a fully diluted cap of $3.1B

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 71.2% 61 $41 312.94 -1.79% -2.97% $782 208 393 376 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 64.4% 76 $3 057.90 -4.13% -4.99% $364 557 204 266 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $1.000957 0.03% 0.07% $78 389 539 616 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 70% 60 $454.95 -4.03% -0.74% $75 119 228 033 BNB 7 days price change
5 Cardano (ADA) ADA Cardano predictions 76% 52 $1.37 -11.53% 13.83% $45 869 836 376 ADA 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 96% 1 $0.999548 -0.04% -0.05% $45 742 193 035 USDC 7 days price change
7 Solana (SOL) SOL Solana predictions 62.8% 81 $134.45 -3.98% -3.06% $42 237 959 711 SOL 7 days price change
8 XRP (XRP) XRP XRP predictions 69.2% 65 $0.728701 -3.80% -4.17% $34 732 162 139 XRP 7 days price change
9 Terra (LUNA) LUNA Terra predictions 74% 57 $76.09 -1.12% 0.67% $27 219 693 512 LUNA 7 days price change
10 Polkadot (DOT) DOT Polkadot predictions 73.2% 51 $23.84 -5.97% -7.36% $23 544 579 275 DOT 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 75.2% 45 $0.160728 -5.76% 5.59% $21 323 857 260 DOGE 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 61.2% 79 $81.61 -6.07% -9.81% $19 942 092 907 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 70% 63 $0.000027 -4.93% -3.67% $15 025 615 032 SHIB 7 days price change
14 Polygon (MATIC) MATIC Polygon predictions 68.4% 59 $2.02 -8.18% -12.60% $14 789 690 265 MATIC 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 90.8% 1 $0.999731 -0.10% -0.13% $14 211 573 940 BUSD 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.