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More Than 14,000 ETH Burned in Last 24 Hours, Here’s Why By BTC Peers

by Mike Robinson

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© Reuters. More Than 14,000 ETH Burned in Last 24 Hours, Here’s Why

NFTs in the ascendance

Some members of cryptocurrency and digital asset worlds predicted that the NFT industry would collapse after the huge drop in sales and transactions. Surprisingly though, NFT projects experienced an increase of over 100 percent in activity in the first days of 2022.

According to burn sources, OpenSea NFT market is one of the major providers of burns, having burned 3,300 Ethereum in 24 hours. 1200 ETH worth of coins were also burned by Common Transfers. Others projects like, GenieSwap, and accounted for slightly more than 1,300 Ethereum to the burn address.

Check out: NFT Marketplace’s LooksRare is live! Vampire attacks on OpenSea

Does Ethereum become deflationary

Due to the disparity between the amount of Ether which has been burned and the quantity that miners have produced, January 9 can be considered another day of deflation for Ethereum. In situations of high fees and congestions, Ethereum can become deflationary.

Ether transaction charges have increased significantly during NFT’s current popularity surge, by more than 150-200%. This has led to increased spending on the part of network users.

Although Ether may be facing deflationary conditions, it does not seem like its market performance is in line with that of the 16.6% correction between January 5th and January 9th. At the time this report was written, Ethereum is trading at $3,145. This marks its first positive day in four days with a 2.4% price rise.

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