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

NFTs on the rise

Before the year 2022, some members of the cryptocurrency and digital assets world predicted the end of the NFT industry following the massive sales and transactional activity drop. But, surprisingly, some NFT projects have increased by over 100% in their activities in the early days of 2022.

As reported by burn sources, the OpenSea NFT marketplace is recorded as one of the main burn providers, following the burning of 3,300 ETH in the last 24 hours. Also, Common Ethereum transfers were responsible for 1,200 ETH burnt coins. Other projects such as Uniswap, Tether, and GenieSwap were responsible for slightly over 1,300 ETH to the burn address.

Also Read: NFT Marketplace LooksRare goes live with Vampire attack on OpenSea

Is Ethereum becoming deflationary?

As a result of the disproportion between the number of Ether that has been burnt and that which miners have issued, January 9 is considered another deflationary day for Ethereum. Therefore, it is commonplace for Ethereum to become deflationary in the instance where the main network faces elevated fees or congestions.

During the most current NFT popularity spike, Ether transaction fees have increased by a more than 150-200%, thereby resulting in increased spending from the network user side.

Interestingly, although Ether is faced with deflationary days, its market performance does not appear to be in sync with it following a 16.6% correction which took place between January 5 to January 9. As of the time of reporting, Ethereum trades at $3,145, and this is its first positive day on the market in the last four days, with a 2.4 % price increase.