For the first time since the Ethereum network’s EIP-1559 upgrade, the daily issuance of the world’s second largest cryptocurrency has been negative.
On September 3, the daily net emission of ether (ETH) was -333, which became negative about 30 days after the EIP-1559 upgrade was activated on August 5.
The upgrade alters Ethereum’s monetary policy by burning a portion of the transaction fees that previously belonged to Ethereum miners in every new block in an effort to reduce fees for network users.
As of press time, approximately 193,000 ETH had been burned, which is worth more than $700 million at the current price of ETH.
The amount of ETH burned on September 3 was 13,840, exceeding the 13.507 ETH newly minted as block subsidies during the same period.
Since August 5, the daily issuance of ETH has been declining. While Ethereum’s mining revenue held up in dollar terms in August, it was primarily due to ETH’s price rally and an increase in on-chain activities related to the NFT markets.
In fact, the transaction fees collected by Ethereum miners in August decreased from over 90,000 ETH in July to just over 66,159 ETH, despite the fact that more than 170,000 ETH were burned last month.
According to publicly available data, transaction fees associated with on-chain activities on the NFT marketplace Opensea accounted for approximately 15% of the ETH burned in August.