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Ethereum turns deflationary for the first time since the Merge — ETH price still risks 50% drop By Cointelegraph



Ethereum turns deflationary for the first time since the Merge — ETH price still risks 50% drop

The annual supply rate of Ether (ETH) slipped below zero for the first time since Ethereum’s transition to proof-of-stake via the Merge in September. The reason? A spike in on-chain activity amid a massive cryptocurrency market crash.

As of Nov. 9, more Ether tokens are being burned than created as a part of Ethereum’s fee-burning mechanism. Simply put, the more on-chain transactions, the more ETH transaction fees get burned.

Ether supply growth as of Nov. 11. Source: Ultrasound.Money
Ethereum transaction fees performance in the last six months. Source: YCharts
Ether balance on all exchanges. Source: Glassnode
3-day price chart featuring symmetrical triangle’s breakdown setup. Source: TradingView
Ether supply percentage held by addresses with 10K–10M ETH balance. Source: Santiment
Ether supply percentage held by addresses with 10–10K ETH balance. Source: Santiment