Ethereum turned deflationary with over 106,000 ETH burned in just one month.

that much Ethereum ecosystem We are back on a mission to ensure Ether becomes deflationary after its burn rate increased significantly. Several factors are believed to have contributed to this milestone, including: Voluntary resignation of a validator.

Over 106,000 ETH has been burned in the last 30 days.

According to data Over 106,000 ETH has been burned in the last 30 days on Ultra Sound Money. During the same period, there were just over 70,000 ETH issued. This resulted in a significant decline. Ethereum supplyIt fell by over 35,000 ETH.

This is a welcome development, as the difference between burn and mint rates has not always been this clear. This has raised concerns about whether ETH is actually deflationary or not. It also started to look like this: London hard fork It wasn’t effective. previously absorptionEthereum introduced this upgrade in an effort to create ETH deflation.

ETH investor You will be happy to know that the token is once again deflationary. These developments could push the price of ETH to new heights. Moreover, this comes at a time when markets are preparing for an impending bull market. This macro factor is therefore put at the forefront of being one of the biggest gainers along with other factors.

ETH price recovers above $2,200 | Source: ETHUSD on Tradingview.com

Factors contributing to Ethereum’s deflationary state

all report Glassnode provided insight into why Ethereum is deflating once again. One of them is that the number of validators being onboarded has slowed in recent weeks. Instead, Ethereum is seeing an increasing number of validators leaving the ecosystem. These developments ultimately slowed ETH issuance.

This exodus trend began specifically in early October. I think this is when investors really started taking full advantage of this benefit. shanghai upgrade It happened in April. Before October, end event It is reported that there were an average of 309 validators per day. By early October, this had increased to 1018 validators per day.

Meanwhile, the burn rate is said to have increased significantly due to increased network activity during this period. As network usage increases, so do gas prices. Daily trading fee burn amount EIP1559 Protocol As a result, it also increased. It is reported that the cumulative fees burned from October to November amounted to 5,368 ETH.

Ethereum is currently flying high, and this may be partly due to its recently achieved status. At the time of writing, the cryptocurrency token is said to be trading at around $2,240, up more than 3% in the last 24 hours. data From CoinMarketCap.

Featured image from CryptoTV, chart from Tradingview.com