As the NFT business continues to flourish, the Ethereum network has reached a new milestone of consuming more than 110,000 ETH in one week of operation.

The main goal of the fee-burning algorithm proposed in the EIP-1559 upgrade last summer was to make Ethereum a deflationary currency. It would only be conceivable if the asset’s net issuance remained below the number of coins burnt over a certain time period.

The quantity of ETH surpasses the number of issued coins in one week, resulting in a negative issuance. Ethereum’s net issuance remained at 16,000 coins or $54 million at the time of publication.

Negative issuance suggests that the quantity of coins circulating on the network has reduced, which might be seen as a deflationary impact anticipated by the bulk of Ethereum owners.

Source: Ethereum

The majority of Ethereum community insiders believe that the recent bull run is a direct result of deflation, which raises the value of Ether after each deflationary block is added to the chain.

However, when compared to other Layer 1 chains or high-capitalization digital assets, Ethereum’s market performance does not appear to be much better or worse. Solana and Ethereum grew at a far slower rate than another L1 network that lets users construct decentralized solutions during the same period.

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