Another deflationary week appears on the Ethereum network
With another spike in the popularity of the NFT industry, the load on the Ethereum network has increased exponentially, leading to gas charges rising by as much as 200-300 Gwei during times of congestion. With high gas fees, more ETH is burned every day.
Ethereum burn rate increases
According to the WatchTheBurn service, Ethereum is currently burning almost 17,000 ETH every day. The number of burned coins in the last hour totaled 600, which equals more than $2 million.
When it comes to net issuance, the current week can be considered one of the few deflationary weeks for the second largest cryptocurrency in the market. As the burn tracker suggests, over 10,000 ETH, or $35 million, has been burned rather than issued in the past seven days.
In the last week, users have paid more than $320 million in rewards and $32 million in tips for Ethereum miners. Previously, Glassnode reported that ETH miners’ incomes have reached a two-month high.
Other on-chain indicators suggest Ethereum network activity is on the rise, with more addresses sending and receiving coins since the start of the year.
Ethereum market performance
As the market slowly exits the consolidation phase begun at the beginning of the year, Ethereum shows its investors a 9% price increase in the last three days prior to numerous technical indicators suggesting that the asset is extremely oversold.
As U.Today previously covered, the Relative Strength Index indicator hit a two-year low as Ethereum dipped below the $3,200 support zone. At press time, Ether is trading at $3,372 and showing a neutral price performance over the day with a slight price decline of 0.08%.
