Why Ethereum (ETH) Price May Explode Coming July?
Twitter is agog with the deflationary trend of Ethereum (ETH). Twitter user “CryptoGucci” shared data behind the significant reduction in ETH issuance, estimating that Ethereum’s inflation is down nearly 70% since 1559 went live. It was a week when the $ETH inflation rate fell even below the $BTC rates.
In other words, ETH has entered a phase of deflation, and the burning of the token is making the numbers scarce. It is the opposite of inflation, so common with fiat currencies.
This month the $ETH inflation rate dropped below the $BTC inflation rate
Once The Merge is here in July, ETH issuance will drop 90% and turn fully deflationary
This will be the single most bullish event in the history of #Ethereum
This is why ETH is truly Ultra Sound Money pic.twitter.com/XgFgvuaXRl
— Crypto-Gucci.eth ᵍᵐ🦇🔊 (@CryptoGucci) January 17, 2022
Once the Merge is effected in July, ETH issuance or mining will drop to 90%, and it will be one of the single biggest bullish events in the history of the number two cryptocoin.
Is Ethereum (ETH) More Deflationary Than Bitcoin (BTC)?
Ethereum is in a deflationary phase for the first consecutive week. In other words, more ETH is being decimated than created in the past week. Since August, when the EIP-1559 was introduced along with the Ethereum burn mechanism, it has destroyed More than 1.5M Ether. In other words, more than $5 Billion worth of ETH has been destroyed in less than six months. Ethereum’s issuance rate also recently dropped below Bitcoin’s for the first time.
- ETH is all set to go for the Merge upgrade in July for Ethereum 2.0 roadmap. The Merge will drastically reduce the issuance of ETH to a mere trickle and will also usher in the Proof-of-Stake consensus, ending block rewards for Proof-of-Work miners.
- As per the Ethereum data aggregator ‘Watch the Burn’, an excess of 5,910 ETH were destroyed compared to the produced coins in the week ending January 18. It equaled a net weekly issuance offset of $18.8M. The weekly issuance offset was roughly 15,500 ETH or $51.M as January 17.
- According to estimates by Data provider Ultrasound Money, ETH was being destroyed at the rate of 10 ETH every minute, which aggregates an excess of 100,300 ETH were destroyed over just the past week. The biggest destroyer was OpenSea, which accounted for destroying 17,625 ETH, followed by ETH transfers with 9,599 ETH, and Uniswap v3 with 6,249 ETH.
An average of 6.47 ETH have been burned every minute since EIP-1559 went live.