Ethereum Approaches Deflation as $35 Million More Coins Were Burned Than Issued This Week
With another spike in the popularity of the NFT industry, the load on the Ethereum network has increased exponentially, which resulted in a gas fee spike that reaches up to 200-300 Gwei in congestion periods. With high gas fees, more ETH is being burned every day.
Ethereum burn rate increases
According to the WatchTheBurn service, Ethereum is currently burning almost 17,000 ETH every day. The number of burned coins in the last hour totaled 600, which equals more than $2 million.
As for net issuance, the current week can be marked as one of few deflationary weeks for the second-biggest cryptocurrency on the market. As the burn tracker suggests, more than 10,000 ETH, or $35 million worth, have been burned rather than issued in the last seven days.
In the last week, users have paid more than $320 million in rewards and $32 million in tips for Ethereum miners. Previously, Glassnode reported that ETH miners’ incomes have reached a two-month high.
Other on-chain indicators suggest that Ethereum’s network activity is on the rise, with more addresses sending and receiving coins since the beginning of the year.
Ethereum market performance
As the market slowly exits the consolidation phase begun at the beginning of the year, Ethereum shows its investors a 9% price increase in the last three days prior to numerous technical indicators suggesting that the asset is extremely oversold.
As U.Today has previously covered, the Relative Strength Index indicator has reached a two-year low as Ethereum plunged below the $3,200 support zone. At press time, Ether trades at $3,372 and shows neutral price performance on a day with a slight 0.08% price decrease.