Ethereum Supply Dropped to Negative For The First Time

Ethereum supply dropped to negative for the first time. It was a first for Ethereum and had a deflationary day.

After EIP 1559, which went into effect last month in Ethereum, the number of ETH burned exceeded the number of new ETH generated through mining rewards. A total of 13,838 ETH was burned yesterday. At the current price, this amount corresponds to $55 million. ETHs burned were over 2 percent of the new ETHs (13,507) released yesterday. Cryptocurrency burning is a mechanism used to reduce supply. Burning means eliminating the cryptocurrency so that it can no longer be circulated. Cryptocurrencies are being moved to a wallet that no one controls and cannot control. In Ethereum, this mechanism was also activated under EIP 1559 during the London update. For ETH, September 3 is recorded as the first deflationary day in its history, which means the asset is fully deflationary. The total ETH burned after EIP 1559 is still below the amount of ETH produced during that time. Next February, ETH can be referred to as a purely deflationary asset, as ETH supply is expected to decline that month. As the use of the Ethereum blockchain increases, so does the number of ETH burned. Until now, the most ETH burning occurred with the transactions on the NFT platform OpenSea. While OpenSea's share of the total was 30 thousand ETH, it was followed by ETH transfers with 16 thousand 400 ETH and decentralized exchange Uniswap with 11 thousand 500 ETH.