It’s been six months since the Ethereum blockchain launched The Merge, one of the biggest updates in cryptocurrency history. Contrary to popular belief, the crypto market is still showing a bearish trend. A situation that affects almost all crypto platforms. For its part, Coinbase records a deflated ETH issue for the first time. News that could enjoy more than one!
Coinbase: the verdict fell on Thursday
On Thursday, Coinbase (COIN) released a report on the crypto transactions recorded on its platform. According to this report, ether (ETH) has turned deflated for the first time since the launch of The Merge. The reason for this deflationary emission is simple: we burned more ether than we created during the same period. The goal is to verify all transactions. Result: a significant reduction in supply.
Coinbase reports a drop of about 4,000 tokens in the last week alone. Still according to this same report, the rate of creation of new ethers would also have fallen significantly: at a rate of 90%, and this is, since the Ethereum merger.
Room for different assumptions and explanations
In its report, Coinbase mentioned a rather interesting point: the launch of the XEN token two days ago, which led to a deflated ether burn rate. Still based on Ethereum, the latter caused a strong increase in traffic last weekend.
For some analysts, the deflation trend of ether (ETH) would be connected with the increase in Ethereum gas fees (between 20 and 30 gwei). This rise is indeed what caused the new issue of ETH to expire.
For some, a reduction in Ether supply should support higher prices. However, Coinbase presents a completely different reality. In fact, the price of cryptocurrency has fallen about 4% on the platform. Let’s wait for the next weeks to know the evolution of the crypto prices on this platform!
Get a summary of the news in the world of cryptocurrencies by subscribing to our new servicedaily and weekly so you don’t miss any of the essential Cointribune!
My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe I’m very interested in. And the topics covered in the platform give me the opportunity to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!