One month after the launch of Hardfork London, the Ethereum network was able to enter the inflation phase. This is the first time that the number of burned units in the Ethereum network exceeds the number of extracted units.
to the Report Atodium, Ethereum’s daily supply rate first declined on September 3, a milestone for the market’s second-largest digital currency.
A negative supply rate means that the number of ethers burned in the network is greater than the number of units extracted by miners over a 24-hour period.
On September 4, the Ethereum supply rate once again exceeded the number of units burned, which means that the ether is again in inflation.
At the time of writing, 203,266 Ethereum units, or $ 795 million, have been shut down. This figure was recorded only 2 weeks after the number of burned ethers reached 100,000 units. Currently, 4.56 units of ether are released from the network cycle every minute.
The Ethereum network was able to achieve deflation in a short period of time due to the mechanism of burning commissions in the “EIP-1559” upgrade plan, which was part of the London Hardfork Division, which was launched on August 5 (August 14).
Due to major technical changes in the Ethereum network, this digital currency is now able to offset the inflationary pressure caused by the supply of new units by burning part of the fees. Proponents of the digital currency say Ethereum has become a “super-stable” currency.
The market has so far not ignored the change in Ethereum’s monetary policy, and at the moment the price of Ethereum is only 10% away from its historic high of $ 4,356.