ETH Recently Had Its First Deflationary Day Where More Ethereum Were Burned Than Minted - The Crypto Basic

EIP-1559 was a major change in ETH code that allowed burning of transaction fees.

EIP-1559, which was introduced to Ethereum last month and it was meant to slow down the rate of growth of ETH supply. However, the supply of ETH did not grow on September 3rd rather it shrank.

There were more Ethereum burned than minted on September 3. In simple words more ETH were burned than produced by miners. This is a significant milestone for ETH.

ETH Supply growth turned negative on September 3. Over 13,200 Ethereum were burned, Where as 12,500-13,000 ETH were produced.

Scott Lewis, co-founder of DeFi Pulse, believe that this is the first time Ethereum has been deflationary.

ethereum getting close to its first day of deflation pic.twitter.com/4ULIbLt5aD

— 𝚂𝚌𝚘𝚝𝚝 𝙻Ξ𝚠𝚒𝚜 🌾 (@scott_lew_is) September 3, 2021

Evan Van Ness founder of Week in Ethereum News writes:

$ETH has had negative issuance over the last 24 hours due to EIP1559

— Evan Van Ness 🦇🔊 (@evan_van_ness) September 3, 2021

On September 4, however, Ether supply increased again. This resulted in ETH becoming inflationary.

At the time of writing, 203,266 Ethereum (approximately $794 million) had been permanently removed from circulation due to EIP-1559.