Ether Returns to “Deflation” as NFT Sales Surge, Causing More ETH to Burn

Ether returns to “deflation” again, according to data from ultrasound.money This shows that the net amount of ether emissions, or annual inflation, is down to -0.07%, meaning that the amount of ether being burned is higher than the amount currently being emitted.

Marcus Sotiriou, market analyst at digital asset broker GlobalBlock, noted that recent ether deflation is a result of NFT token sales, driven by the broader crypto market sentiment.

More than 14,700 Ethers (ETH), worth about $24 million, have been burned over the past seven days, according to Cointelegraph. ultrasound.money Approximately 3,400 of these ETH were burned during NFT trading on the NTF exchange OpenSea.

according to information from cryptoslam NFT sales volume rose by more than 5% to $242 million over the past week, and 80% of the volume, or about $195 million, occurred on the Ethereum network.

“Increased NFT sales on Ethereum means more transactions, resulting in more ETH being burned,” Sotiriou said.

Ether inflation is based on a mechanism known as the Ethereum Improvement Proposal (EIP)-1559, in which fees paid for transactions on the network are “burnt” out of circulation. The more ETH will be burned.

refer : LINK

The post Ether returns to ‘deflation’ again as NFT sales surge, resulting in more ETH burns appeared first on Bitcoin Addict.

source site