Advertisement
AD

Main navigation

Ethereum Network to Hit 1 Million Burned Coins in Next Few Days

Advertisement
Thu, 18/11/2021 - 12:18
Ethereum Network to Hit 1 Million Burned Coins in Next Few Days
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

One of the main things fueling the ultimate bullrun on Ethereum is the burning mechanism that takes a large portion of ETH coins out of circulation and creates conditions in which the asset becomes deflationary.

Advertisement

For now, thanks to the mechanism presented in the EIP-1559 update, more than 930,000 Ethereum coins have been burned and disappeared. With the increased usage of the network, investors will soon see one million burned coins in total.

Watch The Burn
Source: WatchTheBurn

The current burn rate is at around 12,000 coins per day. At the same pace, the network will see the millionth coin being burned in the next 4-5 days. Due to a strong market correction, Ethereum lost 10% of its value, which also resulted in a drop in the value of the burnt coins.

How coin burn affects the market

With the high burn rate, Ethereum might enter a state of supply shock when the price of an asset rapidly changes due to the coin's inability to balance between supply and demand.

Related
India to Launch First Version of CBDC Next Year

The situation is getting worse due to skyrocketed exchange outflows, which indicate that traders are not willing to sell their holdings and prefer to store them somewhere else.

Most cryptocurrency analysts note that long-term investors hope to see Ethereum reaching the status of a deflationary asset, which means that it will face the circumstance in which more coins are being burned than issued.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles