Ether Turns Net Deflationary Post-Merge
Spike In Network Activity Sees Nearly 3,000 ETH Burned in the Past Day
By: yyctrader •DeFi News
Ether is finally ultra-sound money.
The largest smart contract platform by market capitalization has hit the much-anticipated milestone of zero net issuance, 54 days after it the network transitioned to proof-of-stake consensus.
Ether Supply since the Merge. Source: ultrasound.money
The Merge reduced Ether issuance by roughly 90% by eliminating block rewards to miners in favor of staking rewards for validators who stake ETH. The move has reduced the blockchain’s energy consumption by 99%.
In an inflationary world, the term ‘sound money’ was coined as a reference to Bitcoin, with its capped supply.
With Ether’s potential to become a deflationary asset — meaning that its total supply decreases over time — after a fee-burning mechanism was introduced with the EIP-1559 upgrade, the Ethereum community took the meme one step further, and ‘ultra sound money’ was born.
Nearly 3,000 ETH, worth $4M, was burned today alone as on-chain activity spiked as a result of market volatility. Ether is down 15% in the past 24 hours as insolvency fears surrounding crypto hedge fund Alameda Research and the FTX crypto exchange have spooked investors.
Crypto Markets Whipsawed After Binance’s Deal To Acquire FTX Fuels Short-Lived Rally
Solana Ecosystem Battered as FTT Crashes 85%The Defiant