Lucas Outumuro, chief of research at the IntoTheBlock data company, has taken to Twitter to announce that the net inflation of Ethereum has for the first time gone lower than that of flagship cryptocurrency Bitcoin.
Meanwhile, data provided by CryptoCompare shows that Ethereum-based products have shown almost 73% growth and are now worth a whopping $13.8 billion.
EIP-1559 is making Ethereum deflationary
In his thread dedicated to the second largest crypto, Lucas Outumuro has shared that the daily issuance of Ethereum has dropped, causing the net inflation of ETH to decline versus that of Bitcoin for the first time.
According to his tweet, for Ethereum it is now 3,574 ETH (1.11% annualized) and for Bitcoin 900 BTC (1.75% annualized).
The increased NFT activity on the Ethereum network has substantially risen ETH fees and, therefore, the number of Ethers burnt along with them. The recently integrated EIP-1559, aka London, now allows burning part of ETH paid as fees for transactions.
Token burning has already made ETH deflationary for certain brief periods of time after the London upgrade. This upgrade has been decreasing ETH inflation, the expert says, adding that it is generally leading to Ether turning into a deflationary asset soon.
1/ For the first time $ETH's daily issuance was lower than $BTC's— Lucas Outumuro (@LucasOutumuro) August 27, 2021
ETH net inflation: 3574 ETH (1.11% annualized)
BTC net inflation: 900 BTC (1.75% annualized)
A short thread on Ethereum’s recent surge in activity and potential implications of its decreasing inflation 👇 pic.twitter.com/IBT9Vf3MNo
ETH-based products surge 73% in August
As per data shared by the CryptoCompare analytics firm, products made on the basis of Ethereum have gained substantial momentum after the London hardfork—the NFT market among them.
In August, the worth of Ethereum-based products surged a staggering 72.8 percent and is now valued at $13.8 billion.
Besides, according to the tweet, the total market share of the second biggest crypto now amounts to 25.2%: the highest level it has reached this year.
#Ether, and ETH-based products, have gained significant momentum following the London upgrade, as well as the rise of the #NFT market.— CryptoCompare (@CryptoCompare) August 27, 2021
This month, ETH-based products have grown 72.8% to $13.8bn. #Ethereum's total market share now stands at 25.2%, the highest level this year. pic.twitter.com/yhzARscTKV