Ethereum's daily issuance turned negative for the first time

Ethereum's daily issuance turned negative for the first time

On September 3, Ethereum's daily issuance took a negative value for the first time since the activation of the London hardforge. On Friday, the supply of the second most capitalized cryptocurrency decreased by about 353 ETH.

According to the ETH Burn service, the issue amounted to ~13,485 ETH in a day. During the same period, the network burned 13,838 ETH.

Part of the London update, which was activated on August 5, was EIP-1559, which involves burning a portion of transaction fees. As of this writing, 203,177 ETH have been burned, according to ultrasound.money. The value of these coins is estimated at $797.3 million.

Every minute, the protocol burns about 4.56 ETH. The largest network entity in terms of coins burned is NFT-marketplace OpenSea - the platform has withdrawn more than 31,700 ETH (~$124.4 million). In comparison, the decentralized exchange Uniswap v2 burned 11,994 ETH (~$47 million).

Previously, the network has already recorded cases where the protocol withdrew more coins from circulation on the hour timeframe than it issued.

As a reminder, experts predicted that the activation of EIP-1559 would lead to a 20-30% decrease in income of Ethereum miners. However, in August their earnings increased by 60% and reached $1.65 billion.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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