January 23, 2022

Ethereum will become deflationary next year

Ethereum will become deflationary next year

Ethereum is entering full deflation as the transition to ETH 2.0 approaches.

Hard fork London with built-in the combustion mechanism provided an increase in the deficitand the value of ETH as an asset. After the integration of EIP-1559, more than 1 million ETH was burned on the network. In early November, the difference between the number of issued and destroyed tokens over seven days in aggregate became negative for the first time.

Ethereum will become deflationary next year

The annual inflation rate for ETH was less than 1%, with the issuance of 5.4 million ETH and the burning of 4.3 million coins.

Ethereum will become deflationary next year

Experts suggest that deflation will increase after the full transition of the network to Eth 2.0.

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