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Ethereum faces deflationary day again! Over 3,000 ETH burned in a single day

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Ethereum faces deflationary day again! Over 3,000 ETH burned in a single day

Ethereum welcomed its second deflationary day since the launch of the EIP-1559 upgrade. In the past 24 hours as of 10/28, the amount of Ether burned exceeded the issuance, with a total of 650,000 Ether burned so far, valued at over $2.6 billion.

Negative Issuance Exceeds 3,000 ETH

According to data from Watchtheburn, during the 24-hour period from 10/27 to 10/28, the amount of Ethereum burned exceeded the issuance by over 3,000 ETH. The data is as follows:

  • Daily Issuance: 13,130 ETH
  • Daily Burned: 16,384 ETH
  • Daily Summary: - 3,254 ETH
  • Daily Burning Rate: 11.36 ETH/min
Watchtheburn

Second Deflationary Day

Prior to this, Ethereum experienced its first negative issuance on 9/3, reducing the daily issuance by around 352 ETH, with a burning rate close to 10%. The negative issuance on 10/28 was almost ten times that of the previous occurrence.

Ethereum founder Vitalik Buterin previously stated during the first deflationary day that this was still inflationary:

Technically, it's not entirely deflationary. Adding in the daily reward of about 1,200 ETH post transition to PoS, it still exceeds 800 ETH for a deflationary mechanism, but it is still quite impressive!

However, based on the data from 10/28, even with the post-PoS transition 1,200 ETH reward, the negative issuance still reached -2,054 ETH.

Burning Rate and Gas Fees Simultaneously Rising

Not all members of the community are pleased with Ethereum's current situation. User GraspOnCrypto.eth pointed out:

Sometimes I wonder if this is a good thing. I want ETH to rise, but it's too hard for me to mint NFTs at $200. If ETH goes to $10,000, the minting fee would be $500. I don't know if we should celebrate the high Gas Fee.

Evan Van Ness, founder of Ethereum's weekly report "Week in Ethereum News," explained that a shift to Layer 2 usage is necessary, and highlighted that this is Ethereum's ultimate goal: a "global settlement layer."

GraspOnCrypto.eth believes:

All current Layer 2 solutions operate like independent networks. The transfer of assets to Layer 2 solutions should be a seamless, almost imperceptible experience. I believe there is still a long way to go.

Due to the recent surge in trading volume of Shiba Inu coin (SHIB) and its significant increase, CMC data shows that its trading volume has surpassed Ethereum, second only to USDT and BTC. SHIB/USDT has become the top trading pair on Binance in terms of volume.

SHIB/ETH trading volume on Uniswap v2 also takes the top spot.

According to Etherscan data, Uniswap v2 and SHIB consumption rank in the top three, with the surge in trading volume likely being a major factor in the rise of Ethereum's burning rate.