The supply of the second-largest crypto asset Ethereum (ETH) is deflating, thanks to the success of a major upgrade known as EIP-1559.
New numbers from Ultrasound. Money shows 50,317 ETH worth $77.5 million has burned since the upgrade went into effect in August of last year.
The overall supply of ETH began to reverse in January and has remained locked in a steep dive ever since.
After Ethereum’s EIP-1559 upgrade went live, each time an ETH transaction is sent, a percentage of the transaction fee is permanently removed from Ethereum’s circulating supply.
This means the more interest, adoption and trading volume the Ethereum network sees, the more scarce the asset can become.
The end result in 2023 is that the overall supply of ETH is now demonstrably deflationary in a world of endless paper money printing and inflation.
Ethereum’s next big upgrade, known as the Shanghai upgrade, was recently delayed.
The upgrade will release about $25 billion worth of ETH that has been locked in early staking contracts.
Developers were pushing to launch Shanghai this month, but recently announced a delay until April at the earliest.
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