Rise in NFT Sales Made ETH Redeflationist

The Ethereum blockchain is one of the most actively used networks today. It can sometimes receive intense criticism about transaction fees and speed. The biggest reason for this seems to be the increase in the density on the network. For the solution, he switched from Proof of Work to Proof of Stake in the first place. This resulted in a massive reduction in energy use, up to 99.98 percent.

However, the latest data reveal a very different data. Increasing instantaneous NFT sales on the Ethereum network changed the rate of ETH that the network produced and burned, causing Ethereum to become re-deflationary. This means that ETH actively burned is more than ETH minted. Ethereum charges a “gas fee” for using the Ethereum network. As demand to use the network grows, so does the gas fee, triggering a number of burning and payment contracts to raise the value of ETH.

In summary, Ethereum is a deflationary cryptocurrency due to its stable and declining supply of ETH and gas fee mechanism. This can cause the value to increase over time as demand for the currency increases. Of course, this deflationary rate is not always maintained at this point. According to the latest data shared by Ultrasound Money, ETH currently burned on the Ethereum network is 0.008 percent less than produced. Although this is small, it is of great importance for the stability of the network.