Ethereum Net Inflation Lower Than Bitcoin For the First Time
IntoTheBlock has revealed a shocking report that Ethereum net inflation has gone lower than Bitcoin for the first time in history. Currently, Ethereum is 3,574 and Bitcoin is 900 (1.11 vs. 1.75 annualized). The data company further revealed that the issuance of Ethereum has also dropped. The Chief Researcher Lucas Outumuro made this revelation on Twitter.
However, CryptoCompare published another data that Ethereum-based products, including Ether, have grown by a whopping 73% to a staggering $13.8 billion. The analytics firm attributed the growth to the surge in popularity of NFTs.
The Upgraded London Network Is Deflating Ethereum
Outumuro stated that the issuance of the second-largest cryptocurrency in the world has declined, making the inflation drop below Bitcoin. He further explained that the increase in activity on Ethereum, especially the NFT, has raised Ether fees, causing some Ethers to get burnt along them. He blames the new EIP-1559 upgrade for the situation.
Since Ethereum’s London upgrade was concluded, Ethereum had been deflating. It had happened for short periods, but it could happen for a long period any time soon. According to Chief Research, the upgrade will further deflate Ethereum, and soon, it would become a deflationary asset.
Ethereum-Based Products On the Climb
According to CryptoCompare, products based on the Ethereum network have gained momentum after the upgrade, surging by almost 73% in August. The total worth of the products amounts to $13.8 billion. It’s agreed that the upgrade is the main reason for the growth of NFT, which has taken the internet and social media by storm recently.
Despite the deflation, Ethereum still has a huge market share. According to the tweet, Ethereum’s market share reached 25%, the highest it had reached in 2021.
Prices Remain Bullish Despite the Hacks and Vulnerability
Earlier today, the Ethereum Blockchain network was hit by a bug that affected a significant number of nodes. Marius Van der Wijden who is the developer of the software Geth said that the attacker exploited the loophole in the older versions. This action caused the nodes associated with the software to split.
The developer had fixed the bug issue on some of the nodes, upgrading the software version to v1.10.8. However, hackers noticed the older versions still existed and decided to attack them. Wijden advised the node operators to upgrade the versions quickly by installing a patched version of Geth.
Funny enough, the news of the attack didn’t affect market prices. Ethereum recorded a 4% increase in today’s market.
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