Ethereum's first ever deflationary day.What does this mean?

[DanielBroonze]

Ethereum's first ever deflationary day 🦇🔊

Why wouldn't the usage of Eth keep growing? 2.0 hopefully first brings inflation back (less gas per transaction), but eventually, as usage grows, what's there to stop eth growing to become defamatory again?

[zasad@]

https://decrypt.co/80222/more-ethereum-has-been-burned-than-minted-past-24-hours
"More Ethereum has been burned on the network than minted over the last 24 hours, meaning there's less ETH available today than there was yesterday. Ethereum experts believe this is a first for the network. "

Ethereum coins will decrease after the launch of the Merge. It is too early to draw conclusions based on the results of 1 day.

[Rruchi man]

The general crypto meaning of deflation is when a cryptocurrency reaches max supply, so in layman's terms, ETH first ever deflationary day is the day the amount of ETH in demand exceeded the amount in supply.

Ethereum coins will decrease after the launch of the Merge. It is too early to draw conclusions based on the results of 1 day.

Yes, but it is a pointer to show already that their plans to increase the value of ETH by reducing the market supply by burning the base fees for every transaction instead of letting it go to miners, is already working.

[tvplus006]

Ethereum's first ever deflationary day

I am not satisfied with the method by which such an achievement was achieved, since it happens at the expense of those who use the ether blockchain, paying a high cost for gas for this. If the load on the network continues to increase, and developers ignore such a problem, then we can expect that the amount of ETH burned daily will be even greater.

[timerland]

Basically it means that more ETH has been destroyed forever than it has been mined.

I don't think that this is anything exciting, it's just for more of an attention grabbing headline than anything else.

People are quick to jump to conclusions and hype up anything and everything imho. This is certainly a one-off event that is going to not be a very impactful event going into the future i think.

[percy_tc]

Basically it means that more ETH has been destroyed forever than it has been mined.

I don't think that this is anything exciting, it's just for more of an attention grabbing headline than anything else.

People are quick to jump to conclusions and hype up anything and everything imho. This is certainly a one-off event that is going to not be a very impactful event going into the future i think.

Well, its indeed exciting! Of course there is way too early for conclusions, but i hope that the st*pid miners now see the point of previous forks.

[tabas]

There will be no more new supply when 2.0 has been launched and this will continue to burn some of the ETH through transactions which is the effect of London.
Basically, there will be a higher price that's about to seen in the future when most of its updates are already done. It is why many have been looking to hold it as much as they can and even I, despite sold quite few before the bull still holding a handful of it.

[Bitcoin Seller]

As for deflation, I know that Ethereum is unlimited, so it can’t reach the maximum supply, but coins have deflation usually when they reach max supply. On the other hand I think that we can see a similar situation when during one day there is more burned Ethereum than there is mined. I am not sure, but when Ethereum 2.0 launches, maybe there will not be any new Ethereum generated.

[lizarder]

Ethereum's first ever deflationary day 🦇🔊

Why wouldn't the usage of Eth keep growing? 2.0 hopefully first brings inflation back (less gas per transaction), but eventually, as usage grows, what's there to stop eth growing to become defamatory again?

They have gone through a lot of problems nowadays, there was almost no solution for people to use its services at that time, so ethereum is becoming more and more powerful and influential in today's crypto world, 2.0 also does not guarantee the inflation that will happen to them and cannot be faced in development forward.

The community feels that gas is still very high per transaction at this time, even if there is another solution, then ethereum will never be the community's choice for the future, if they can't reduce gas per transaction.

[bitkanu]

i hope that the st*pid miners now see the point of previous forks.

Miners are feeling worry about that now. They can still mine ethereum but this will not be last long. Ethereum may go for POS as soon as possible and this will be forcing miners to move from ethereum to the another chain. I hate that miners were creating the inflation and controlling the governance. I hope that the holders would be able to give contribution to the network once POS will be fully launched.

Miners were the big problem of ethereum to improve its protocol. These miners can reject the EIP coz they can do something bad to prevent it.

I hope that i will see ethereum will be fully go to the POS

[hd49728]

Miners are feeling worry about that now. They can still mine ethereum but this will not be last long. Ethereum may go for POS as soon as possible and this will be forcing miners to move from ethereum to the another chain. I hate that miners were creating the inflation and controlling the governance. I hope that the holders would be able to give contribution to the network once POS will be fully launched.

They will regret that why they dumped their Ethereum in 2017, 2018 and especially in 2019.

They were able to mine Ethereum very easily in 2017 but price was $50 to $100 only. Now price is $3900 and the difficulty is considerable higher. They get significant less mining rewards.

I can not know what others think of Ethereum but I reserve 2 ETH in my portfolio. I believe in the future of blockchain industry in which Bitcoin and Ethereum will be leaders.

I regret that I did not buy Bitcoin when it was $3000 in 2017 so now I will not repeat that mistake.

[adiebitsler]

Well, its indeed exciting! Of course there is way too early for conclusions, but i hope that the st*pid miners now see the point of previous forks.

Why would you expect such a thing in those who mine with st*pid ?
Isn't that more about the right of everyone to do their own work and has nothing to do with other people who are just spectators

[kryptqnick]

It's surprising that people are mining less than burning, but this is probably good news. If demand stays roughly the same, but supply decreases, the price will go up. That is, if this becomes a tendency rather than a one-time thing. For now, it's not an event the significance of which we can accurately measure because it only happened once, so there's no direct impact on the market yet. That being said, Ethereum has been growing lately, and events like this might boost the growth of the price even further.

[Kavelj22]

i hope that the st*pid miners now see the point of previous forks.

Miners are feeling worry about that now. They can still mine ethereum but this will not be last long. Ethereum may go for POS as soon as possible and this will be forcing miners to move from ethereum to the another chain. I hate that miners were creating the inflation and controlling the governance. I hope that the holders would be able to give contribution to the network once POS will be fully launched.

Miners were the big problem of ethereum to improve its protocol. These miners can reject the EIP coz they can do something bad to prevent it.

I hope that i will see ethereum will be fully go to the POS

Going to POS won't help reduce the inflation neither the fee per transaction, as whales will be the ones able to manipulate the network according to their staking and that no more Eth will be generated in ETH2.0.
The number of Eth miners is expected to reduce until the end of this year caused by the last Fork. Or they will be forced to move to another chain.

[dndfinance]

Ethereum's first ever deflationary day 🦇🔊

Why wouldn't the usage of Eth keep growing? 2.0 hopefully first brings inflation back (less gas per transaction), but eventually, as usage grows, what's there to stop eth growing to become defamatory again?

It means, that more Ethereum gets burned than mined.

[zasad@]

https://twitter.com/ethburnbot/status/1433944576532779014
"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"

During the first month, the number of coins decreased, although if you look at the statistics and forecasts for the year, everything is fine.
https://ultrasound.money/

[MoneyJ]

As economic denotes, whenever a supply decreases and demand increases, the price goes up. Now the thing is, how often does Ethereum burn in a certain point of time? For long time hodl of ETH it is really rewarding but for daily transactions it could be nightmare dealing high and fluctuating gas fee. Unlike bitcoin, ETH will rely on market sentiment and how people would be taking considerations and doing transactions in blockchains.

[thayes09]

The reduced supply caused the price of ETH to increase, but also caused the gas fee of the ERC20 platform to spike, making it difficult for many projects to use ERC20 if not improve this may mean ETH will not be able to grow more using BNB or other platforms.

[zasad@]

Ethereum will grow due to the launch of Tier 2 solutions. These solutions allow you to make up to 50,000 transactions per second.
And the most important point is that it all works in a decentralized way, and the smart chain has 21 validators and a fully centralized blockchain.
It takes several more years to launch sharding on Ethereum.

[wmbst]

The reduced supply caused the price of ETH to increase, but also caused the gas fee of the ERC20 platform to spike, making it difficult for many projects to use ERC20 if not improve this may mean ETH will not be able to grow more using BNB or other platforms.

It is the other way round. Not the reduced supply caused the gas fee to spike. The Spike in the gas fees caused the increased burning rate and therefore the reduced supply.

Yes you are right, the huge gas fees is a major issue. But L2 solutions and Ethereum are working on that. But it takes time.