Deflation for Ethereum Comes Earlier Than Expected

Şükriye Akdeniz

Sep 10, 2021

35 million dollars worth of Ethereum was burned in 24 hours, the record of ETH burned in one day was broken

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With the Ethereum London update, the burning function was integrated into the system. The burning process continues to accelerate day by day due to the increase in network load and base fees.
All these innovations have caused 35 million dollars worth of burning in the last 24 hours, and the ETH record burned in y one day has been broken so far.
In addition to a large number of burned coins, more than 6.2 million addresses have been added to the Ethereum network holding 0.01-1 ETH since the start of 2021.
The volume of the massive burn in the network caused deflationary blocks to form on the network. From an economic perspective, deflation works in favor of long and medium-term holders who stockpiled a lot of Ethereum before the EIP-1559 update.
Some analysts have previously stated that they expect Ethereum to become deflationary by the end of this year.
The general network congestion with large print volumes of many NFT projects has led to the current state of the network. It is highly likely that when NFT volumes drop, so will base wage and burn rates.

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