Ethereum issuance in 24h just became deflationary

Ethereum does have insane fees recently. NFTs go through the ceiling, DeFi as hot as ever… and every action becoming ever more expensive.

However, there’s a silver lining to these often-restrictive costs. The base fee, introduced with EIP1559 and enacted in the beginning of August, is burned with every transaction.

During the recent spike in blockchain activity the burned amount of ETH actually started to exceed the amount of newly minted ones – for the first time.

The 24h data by ultrasound. money indicates over 14k ETH burned, while the issuance rate is normally of 12.5-13k ETH. If this rate were maintained, the total supply growth would become -1.6% negative.

Congratulations, Ethereum just became deflationary, at least for 24h. This may not last forever, but it’s a strong signal that markets won’t let go unnoticed ?