Sam Martin

Bitcoin

Ethereum and Bitcoin Price Action, Fundamentals Diverge: Markets Wrap

Jacquelyn Melinek

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                <li>ETH Burn Bot tweeted that the annualized issuance of ether was slightly in a deflationary period at negative 0.59% at 2pm ET, down from a positive 0.27% just an hour earlier</li>
                <li>As of Monday, gas prices were at a level of 138.46, up 60.93% from 86.03 on the year-ago date, according to data from YCharts</li>
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<p>Over $1 billion of ether has been burned since the August 5th implementation of EIP-1559 — hitting another milestone for the cryptocurrency.</p>



<p>Approximately 386,466 ETH, or about $1.1 billion, has been burnt at the time of publication, according to <a href="https://ultrasound.money/" target="_blank" rel="noreferrer noopener">ultrasound money’s</a> tracker.&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="512" height="272" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg" alt="ETH burn" class="wp-image-8695" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg?w=512 512w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/ETH-burn.jpg?w=80 80w" sizes="auto, (max-width: 512px) 100vw, 512px" /></figure></div>



<p>This milestone follows the activation of <a href="https://cms.blockworks.co/eip-1559-is-live-thanks-to-ethereums-london-hard-fork/" target="_blank" rel="noreferrer noopener">EIP-1559</a> in early August as part of the London Hard Fork, which moves transaction fees that once went to Ether miners now are destroyed through the issuance of burn blocks.&nbsp;</p>



<p>On Tuesday, a separate tracker on Twitter called the ETH Burn Bot <a href="https://twitter.com/ethburnbot/status/1442912292769726466" target="_blank" rel="noreferrer noopener">tweeted</a> that the annualized issuance of ether was slightly in a deflationary period at negative 0.59% at 2pm ET, down from a positive 0.27% just an hour earlier.</p>



<p>Although ether is slightly in a deflationary period currently, it is expected to face greater deflationary periods more often once the Ethereum blockchain transforms into a proof-of-stake system in 2022 as a part of Ethereum 2.0.</p>



<p>A deflationary period for ether occurs when the amount of ether burned exceeds the issuance amount so the Ethereum blockchain goes into a deflationary cycle through issuance of deflationary blocks, Blockworks previously <a href="https://cms.blockworks.co/ether-burns-hit-100-million-post-eip-1559-activation/">repor</a><a href="https://cms.blockworks.co/ether-burns-hit-100-million-post-eip-1559-activation/" target="_blank" rel="noreferrer noopener">ted</a>. </p>



<p>As of Monday, gas prices were at a level of 138.46, up 60.93% from 86.03 on the year-ago date, according to <a href="https://ycharts.com/indicators/ethereum_average_gas_price" target="_blank" rel="noreferrer noopener">data</a> from YCharts. Ethereum is trading at $2,885.87, down 3.3% on the day as of 4:28 pm ET on Tuesday, according to <a href="https://www.coingecko.com/en/coins/ethereum" target="_blank" rel="noreferrer noopener">CoinGecko</a>.&nbsp;</p>
