In the morning, Ethereum (ETH) set a new price record. The price increase has stimulated the destruction of 1,600 more tokens over the last 24 hours than were mined.
Today the broadcast clearly demonstrateddeflationary component of the cryptocurrency economy. According to Tokenview, in the last 24 hours the issue in Ethereum amounted to about 15.1 thousand tokens, but during this time more than 16.7 thousand tokens were burned by smart contracts.
The volume of ether withdrawn from circulation increased noticeably due to the hype around the meme cryptocurrency Shiba Inu (SHIB), the price of which jumped by800%. The growing popularity of the project brought its smart contract to the third position in terms of the value of tokens destroyed. According to this indicator, it is now second only to Uniswap V2 (2729 ETH) and Tether (1248 ETH).
Decrease in the total amount of Ethereum in circulationincreased the value of each individual coin, which stimulated an increase in the rate to a record $4404. Since the beginning of October, ETH has grown by 45%, overtaking Bitcoin, which has gained 40% during this time. At the time of publication, the token is trading at $4,364.
The increase in the implied volatility spread of the ETH / BTC pair indicates that the market expects further outperforming Ether growth in the near term.
The mechanism of burning part of the transaction fee inthe Ethereum network has noticeably slowed down token inflation. Since activation, EIP-1559 has already destroyed 668,340 ETH, which is more than half of the ether mined during this time.
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