Before Ethereum Merge, $ 3.8 million worth of ETH was burned.
Ethereum (ETH) developers, who have been preparing for Merge in the past days, have made some preparations before the transition. One of them was made for supply control of Ethereum. Since the EIP-1559 protocol added in this direction, billions of dollars worth of ETH have been removed from the market.
Amount of ETH Burned Exceeded 2.6 Million
The amount of ETH burned exceeded 2.6 million, which corresponds to about $3.8 billion at the current price. It is stated that when the amount burned is measured with ATH, its value will be even higher and will be around 12 billion dollars.
According to the news in U.Today, Ethereum’s annual inflation rate has dropped by more than 50 percent, bringing ETH closer to being a deflationary asset. This means that ETH issuance will fall below the burn rate.
With the Merge update, the total issuance of Ethereum will decrease by 90 percent, pushing the inflation of the network to an extremely low level. With issuance decreasing and adoption increasing, the demand for Ethereum will more effectively increase the price of the asset.
The fund outflow resulted in an almost 80 percent price correction for Ethereum. The major correction is attributed to exits from the DeFi and NFT industries, which are the main sources of revenue for the Ethereum network.
