Ether Becomes Deflationary About 4,000 Tokens After Merging

More ether is burned to verify transactions than is created so the supply has dropped by around 4,000 tokens over the last week.

According to a CoinDesk announcement, this week it became deflationary for the first time since the Ethereum blockchain switched to proof of stake (PoS) and consolidation was the first of five upgrades to be made plans for the Ethereum blockchain.

More was burned to verify transactions than was generated during the same period, resulting in a -0.13% decrease in supply from last week, which equates to about 4,000 tokens. Besides that the rate of new it creation has dropped by almost 90% since the Consolidation.

The supply decreased but the price remained flat, and Coinbase noted that the price of the cryptocurrency fell about 4% in the last week.

In addition, an ethereum-based token project called XEN triggered the deflationary burn rate as it fueled a spike in network traffic last weekend.

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