Ethereum Turns Deflationary, Burning Over 120K ETH in Q2

IconCryptoNewsTerminal Staff20 Jul, 2024

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Ethereum Turns Deflationary, Burning Over 120K ETH in Q2

Ethereum (ETH) experienced a significant shift in its monetary supply during Q2 of 2024, becoming deflationary for the first time. According to CoinGecko, the network burned over 120,818 ETH during this period, outpacing the issuance of new coins. This deflationary trend is attributed to a combination of factors. The implementation of the Ethereum Improvement Proposal (EIP)-1559, which introduced a burn mechanism for transaction fees, played a key role. The network's activity level also witnessed a slowdown during Q2, further contributing to the reduction in ETH issuance.