Ethereum’s fee structure, which brings a fee-burning mechanism to the network, is accelerating day by day due to the elevated network load and increased base fee. These caused $35 million worth of burnings in the last 24 hours, which is the record for the number of coins burned in one day. In addition to a large number of burned coins, Ethereum has added more than 6.2 million addresses to the network that hold 0.01-1 ETH since the beginning of 2021.
Large burn volume on the network inevitably led to the formation of deflationary blocks on the network. At some point, the number of deflationary blocks when less Ethereum has been mined than burned formed deflationary days. From an economic perspective, deflation works in favor of long and mid-term holders who have been able to accumulate a large number of Ethereum coins before the EIP-1559 update.
