• For the First Time, ETH Net Inflation is Lower Than Bitcoin’s: IntoTheBlock

  • Lucas Outumuro, chief of research at the IntoTheBlock data firm, took to Twitter to reveal that the net inflation of Ethereum has now fallen below that of the flagship cryptocurrency Bitcoin for the first time.

    Meanwhile, according to CryptoCompare data, Ethereum-based products have grown by nearly 73% and are now worth a whopping $13.8 billion.

    Ethereum is becoming deflationary as a result of EIP-1559.

    Lucas Outumuro reported in his thread dedicated to the second largest cryptocurrency that the daily supply of Ethereum has decreased, leading the net inflation of ETH to fall below that of Bitcoin for the first time.

    According to his tweet, it is now 3,574 ETH (1.11 percent annually) for Ethereum and 900 BTC for Bitcoin (1.75 percent annualized).

    The increasing NFT activity on the Ethereum network has significantly increased ETH fees and, as a result, the quantity of Ethers burned (the recently integrated EIP-1559, aka London, now allows burning part of ETH paid as fees for transactions).

    Token burning has already caused ETH to become deflationary for limited periods of time following the London upgrade. According to the expert, this improvement has reduced ETH inflation, and it will soon lead to Ether becoming a deflationary asset.

    1/ For the first time $ETH’s daily issuance was lower than $BTC’sETH net inflation: 3574 ETH (1.11% annualized)BTC net inflation: 900 BTC (1.75% annualized)A short thread on Ethereum’s recent surge in activity and potential implications of its decreasing inflation 👇 pic.twitter.com/IBT9Vf3MNo— Lucas Outumuro (@LucasOutumuro) August 27, 2021

    In August, the number of ETH-based items increased by 73%.

    According to statistics published by the CryptoCompare analytics business, products based on Ethereum have gained significant traction following the London hardfork, with the NFT market being one of them.

    The value of Ethereum-based products increased by 72.8 percent in August, reaching $13.8 billion.

    Furthermore, the entire market share of the second largest cryptocurrency has already reached 25.2 percent, the highest level this year, according to the tweet.

    #Ether, and ETH-based products, have gained significant momentum following the London upgrade, as well as the rise of the #NFT market.This month, ETH-based products have grown 72.8% to $13.8bn. #Ethereum’s total market share now stands at 25.2%, the highest level this year. pic.twitter.com/yhzARscTKV— CryptoCompare (@CryptoCompare) August 27, 2021

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