Ethereum records negative daily issuance for first time after EIP-1559

Sep 4, 2021 | The Block News | 0 comments

ethereum-records-negative-daily-issuance-for-first-time-after-eip-1559

The daily issuance of the world’s second largest cryptocurrency has gone negative for the first time since the Ethereum network’s EIP-1559 upgrade.

The Block’s Data Dashboard shows that the daily net emission of ether (ETH) on September 3 was -333, which became negative about 30 days after the EIP-1559 upgrade was activated on August 5.

The upgrade changes Ethereum’s monetary policy by burning part of the transaction fees in every new block that previously belonged to Ethereum miners in an effort to alleviate the fees for network users.

Since the code activation, about 193,000 ETH have been burnt as of press time, worth more than $700 million at ETH’s current price.

The Block’s Dashboard further shows the amount of ETH burnt on September 3 was 13,840, surpassing the 13.507 ETH that were newly minted as block subsidies over the same period.

Since August 5, the daily issuance of ETH has been on a deflationary trend. While Ethereum’s mining revenue managed to hold up in August by dollar terms, it was mainly due to ETH’s price rally and the surge of on-chain activities relating to the NFT markets. 

In fact, the transaction fees that Ethereum miners collected in August went down from over 90,000 ETH in July to just above 66,159 ETH while more than 170,000 ETH were burnt last month.

About 15% of the burnt ETH for August were transaction fees associated with on-chain activities on the NFT marketplace Opensea, public data shows.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

Related Articles

These 3 NFT Projects Collectively Captured Over $10 Billion in Sales

These 3 NFT Projects Collectively Captured Over $10 Billion in Sales

Non-fungible token (NFT) assets have taken the world by storm in 2021 and three current projects in the NFT universe have seen sales stretch into the billions. Statistics show that the NFT marketplace Opensea, the blockchain NFT game Axie Infinity, and the digital...

FTX will begin to move key operations to Bahamas as part of HQ shift

FTX will begin to move key operations to Bahamas as part of HQ shift

FTX is moving some key operations from its long-standing headquarters in Hong Kong to the Bahamas.  FTX Ltd. CEO and founder Sam Bankman-Fried tweeted today that the firm is in the process of moving its headquarters to the Bahamas from Hong Kong. The exchange's...

Pin It on Pinterest

Share This