Ethereum is about to switch back into deflationary issuance. This generally happens when on-chain activity and gas consumption increase.
On-chain activity on the Ethereum network has increased over the weekend. The uptick has resulted in more gas being used which means more ETH being burnt. The ETH burning mechanism was introduced with EIP-1559 in August 2021.
According to the Ultrasound.Money tracker, the XEN token network is one of the highest gas consumers at the moment. Over the past 24 hours, XEN has burnt more than 210 ETH, or approximately $260,000.
This is more than OpenSea, Tether, and Unisoft’s gas consumption. As a result, Ethereum issuance is close to zero (around 0.0011% per year).
