Bitcoin
BTC$23 396.59

-0.27%

Ethereum
ETH$1 657.83

1.20%

Tether
USDT$1.000118

0%

Binance Coin
BNB$330.60

3.36%

USD Coin
USDC$1.000017

0%

XRP
XRP$0.409253

0.39%

Ethereum supply flips briefly into deflation as gas fees spike


11 Aug 2021

#Bitcoin

The theoretical deflationary properties of Ethereum’s London upgrade last week have already been seen in action on the blockchain with almost 800 “deflationary blocks” produced. A spike in the Ethereum transaction fee burn rate has resulted in at least two hours when the supply was deflationary. The network has come under heavy load over the past couple of days which has resulted in a lot more gas being burnt.

Around four hours ago (as of 22.00 UTC), the "ETH Burn Bot" recorded an instance when 545 ETH was burnt within a one-hour period. With Ethereum issuance reported at 532 ETH per hour, it resulted in the asset seeing deflation of minus 13 ETH for that brief period. A larger deflationary burn was detected by the ETH Burn Bot a couple of hours later in which 945 tokens were burnt within the hour resulting in a temporary negative issuance of -417 ETH. It calculated this as an annualized deflation rate of -3.12%.

When the amount of ETH burned is greater than the mining reward, deflationary blocks are produced and the supply temporarily decreases. This has been observed on a tracker from advisory firm Carbono which is currently reporting that there have been 791 deflationary blocks so far, which it defines as blocks where the burnt fee exceeded the mined ETH.

The Ethereum economy is not expected to see sustained deflation until the fee burning is combined with the reduction in block reward issuance as a result of the merge to proof-of-stake at some stage in 2022. The news is not all good for Ethereum users however, as gas prices have increased again. According to Bitinfocharts, the average transaction price has climbed to $20 from a low of around $4 in late July. Etherscan’s gas tracker is reporting as much as $28.60 for a token swap on Uniswap. The surge in demand for Ethereum blockspace has been driven by NFTs with the OpenSea marketplace, Gala Games’ Vox, and Axie Infinity all in the top 4 for gas burning with a combined total of 2,200 ETH, or $7 million burned so far.


Related

Bitcoin manages to stay at support
Bitcoin manages to stay at support
Copy Trading Strategies: How to Start Successful Copy Trading
Copy Trading Strategies: How to Start Successful Copy Trading
Bitcoin enters short-term correction
Bitcoin enters short-term correction
Bitcoin recharges with optimism, aims for a $25K area
Bitcoin recharges with optimism, aims for a $25K area
Bitcoin Spring: Will BTC bounce back soon?
Bitcoin Spring: Will BTC bounce back soon?
The leading crypto has grown to 21,150 USD
The leading crypto has grown to 21,150 USD
Bitcoin price nears 3-week high as trader says sub-7% CPI may see $19K
Bitcoin price nears 3-week high as trader says sub-7% CPI may see $19K
How have Bitcoin and Forex affected each other in 2022?
How have Bitcoin and Forex affected each other in 2022?
BTC bounces back from Monday’s low
BTC bounces back from Monday’s low

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64% 76 $23 396.59 -0.27% 1.23% $451 107 099 851 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 65.6% 64 $1 657.83 1.20% 3.76% $202 875 422 612 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $1.000118 0% -0.01% $68 036 636 818 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 81.2% 39 $330.60 3.36% 7.50% $52 201 447 647 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $1.000017 0% 0.01% $41 963 522 546 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 76.4% 51 $0.409253 0.39% -0.52% $20 789 661 448 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 92.4% 1 $1.000189 0.04% 0.02% $16 275 345 911 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 69.2% 69 $0.401320 0.57% 2.97% $13 885 724 489 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 74% 48 $0.093563 3.08% 6.89% $12 413 030 793 DOGE 7 days price change
10 Polygon (MATIC) MATIC Polygon predictions 68% 64 $1.23 4.16% 7.23% $10 735 757 319 MATIC 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 Solana (SOL) SOL Solana predictions 61.6% 88 $24.53 1.61% 0.31% $9 140 950 218 SOL 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 64% 74 $6.90 5.36% 4.77% $7 960 238 223 DOT 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 64% 79 $0.000014 17.92% 21.32% $7 857 412 436 SHIB 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 76.8% 38 $99.43 0.66% 12.27% $7 179 111 477 LTC 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.

© 2015-2023 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.