For the first time the Ethereum network burned more ETH than was produced in one trading day
For the first time after the activation of EIP-1559 on the Ethereum Blockchain on August 5, more ETH tokens were destroyed than were created in a trading day, generating the first daily negative balance for the digital currency network.
This is revealed by data published by the Twitter account @ETHBurnBot for September 3, where when comparing the amount of Ether produced versus the total burned, it yielded a negative balance of -333 ETH, this being the first time that the network has seen a substantial reduction in total circulating ETH globally.
13,838.3717 $ETH burned 🔥🔥🔥🔥🔥 yesterday.
Issuance: 13,485.5000 ETH
Net Change: -352.8717 ETH
Annualized: -0.11% 📉
2021-09-03 00:00-24:00 UTC
Last Block: 13155888
Cumulative 🔥: 188,644.5521 ETH
— ETH Burn 🔥 Bot 🦇🔊 (@ethburnbot) September 4, 2021
Digging deeper into the figures, the network yesterday produced an average of 13,485 ETH (estimated at $52.84 million) but destroyed a total of 13,838 ETH ($54.23 million) during the same period. Although it has happened that per block processed more Ether is destroyed than is produced, this would be the first time since EIP-1559 came into force that the daily balance shows a negative figure.
- El Salvador Assembly approves distribution of $30 in Bitcoin to every citizen
- September shows negative returns for Bitcoin since 2017
- Bitcoin will continue to rise, says Glassnode report
In a report previously published this week, the progress that the burning of Ether has been registering in relation to total circulating was highlighted. At the time of publishing, data published by the Watchtheburn.com site indicates that a total of 193,870 ETH ($759.16 million) has been destroyed.
Keep in mind that the burning of ETH was a measure contemplated by the main development team with the long-term viability of the project in mind.
Although this generated many discussions and heated debates among members of the mining community, it was finally approved as an attempt to reduce the issuance of Ether and ensure that the digital currency could maintain its value organically, especially in the face of the growing demand that was coming.
As for its price, each unit of ETH is quoted at the time of publication at about $3,930.