Ethereum Records Deflationary Supply for the First Time Since EIP-1559 Launch
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Ethereum (ETH) recorded a deflationary coin supply on September 3 as the number of ETH burned surpassed that of newly issued coins. This occurrence marks the first time the issuance of ETH goes negative since the implementation of the EIP-1559 upgrade, which introduced a deflationary property to the cryptocurrency.
Reports show that 13,485 ETH got issued last Friday (September 3), while about 13,838 tokens got burned, putting the net emission at -353 ETH.
Analysts point at the massive hype around NFTs as the primary catalyst behind Friday’s deflationary recording. Since July, the NFT sector has enjoyed a wealth of attention and interest from investors and artists. As of August, the NFT sector had reportedly processed over $3 Billion worth of transactions, tapping a significant milestone.
While September 3 might be the only deflationary day on record for ETH, the network has recorded a significant drop in the total number of ETH tokens issued since the EIP-1559 launch.
Meanwhile, miners realized around 91,000 ETH s as part of their mining revenue in July. However, this figure dropped to 61,000 ETH by August, a decline of 30% in ETH issuance.
Key Ethereum Levels to Watch — September 6
Ether has fallen into a sideways momentum after peaking at the $4,025 level last Friday. The second-largest cryptocurrency posted a decline to the lower-$3,800 area yesterday, before jumping to the $3,900 area.
However, bulls could not push the price above the $4K level over the past 24 hours. That said, with the recent bullish continuation in the broader market, we could see ETH breach the $4,000 resistance and post a possible continuation towards $4,100. Bulls currently have their aim on the previous ATH at $4,370.
While a sustained bearish move seems unlikely at the moment, minor dips should get repelled by the $3,800 support.
Meanwhile, our resistance levels are $4,000, $4,100, and $4,200, and our support levels are $3,830, $3,800, and $3,660.
Total Market Capitalization: $2.35 trillion
Ethereum Market Capitalization: $462 billion
Ethereum Dominance: 19.6%
Market Rank: #2
