• Within the Next Few Days, the Ethereum Network Will Pass One Million Burned Coins

  • The burning mechanism, which takes a large portion of ETH coins out of circulation and creates conditions in which the asset becomes deflationary, is one of the main factors fueling the ultimate bullrun on Ethereum.

    For the time being, more than 930,000 Ethereum coins have been burned and vanished as a result of the mechanism described in the EIP-1559 update. With increased network usage, investors will soon see a total of one million burned coins.

    At the moment, the burn rate is around 12,000 coins per day. At the same rate, the network will burn the millionth coin in the next 4-5 days. Due to a significant market correction, Ethereum lost 10% of its value, resulting in a drop in the value of the burnt coins.

    What effect does coin burn have on the market?

    Because of the high burn rate, Ethereum may experience supply shock, which occurs when the price of an asset changes rapidly due to the coin’s inability to balance supply and demand.

    The situation is deteriorating as a result of massive exchange outflows, which indicate that traders are unwilling to sell their holdings and prefer to keep them somewhere else.

    Most cryptocurrency analysts believe that long-term investors want Ethereum to become a deflationary asset, which means that it will face a situation in which more coins are burned than issued.

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