2.5 Million Ethereum Have Been Discarded
The Ethereum network continues to burn a sizable number of coins every day despite the declining blockchain activity across the cryptocurrency market and the network’s declining revenue, bringing ETH closer to potential deflation in the future.
The WatchTheBurn Ethereum network monitoring indicated that more than 2.5 million ETH coins have been permanently destroyed. The amount that was burned is greater than $2.6 billion. Net issuance is still only 1.8 million coins, a 52 percent decrease from before the burning mechanism was put in place.
Unfortunately, following the bitcoin market fall we witnessed in June and at the end of May, the rate of coin burning substantially fell. The market’s large exodus of investors had a significant impact on Ethereum network usage and revenue, which in turn had a direct bearing on the daily currency burn rate.
For the time being, the burning mechanism takes about 4,000 ETH out of circulation each day, sparing the market from an additional $4.3 million in pressure. Around 7,000 ETH are still issued everyday net.
The fire has little impact on Ethereum
The burning process appears to have less of an immediate impact on the performance of the asset on the cryptocurrency market than some Ethereum maximalists had anticipated.
But we shouldn’t forget that even if the aforementioned 2.5 million ETH were still there and added to an already sluggish and volatile market, it would be very impossible to anticipate how Ethereum would behave.
Following an unsuccessful attempt at a rebound after having its value reduced by about 50% earlier in the week, Ethereum has lost 20% of its worth.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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