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- The burn rate of ETH has increased in the past month.
- This is due to a surge in activity on blockchain networks.
Ethereum (ETH), a leading layer 1 (L1) network, has seen a notable surge in its burn rate over the past month as network activity gains momentum.
The increase in burn rate (a measure of ETH tokens permanently removed from circulation) suggests increased demand and utilization of the Ethereum network.
As more users transact and participate using decentralized applications (dApps) on L1, the burn rate increases, contributing to Ether’s deflationary supply dynamics.
According to data from ultrasound.moneyOver the last 30 days, 92,831 ETH worth approximately $193.55 million was removed from circulation.
NFT and DeFi fields
Despite widespread apathy toward non-fungible tokens (NFTs) since the beginning of the year, Ethereum has managed to buck the trend, with sales recorded in November surging 37% month-on-month.
AMBCrypto said that this is the first time since February that Ethereum has recorded a month-on-month increase in NFT sales.
According to CryptoSlam data, NFT sales in November, with five days left until the end of the month, totaled $273 million.
When it comes to the DeFi ecosystem, a key indicator of Ethereum network growth is the rally recorded in Total Value Locked (TVL) over the past 30 days.
At press time, Ethereum’s TVL was $35.56 billion, up 19% over the past month, according to data from DefiLlama. The chain’s main protocol, Lido Finance LDO, recorded a 21% TVL increase within the period.
ETH goes into deflation
Due to increased on-chain activity and gas fees on the Ethereum network, the native token, which previously had an increased supply due to low activity, is now in a deflationary state.
How much is 1,10,100 ETH worth today?
Ethereum’s surge in network activity is an important driver of deflation, as increased usage leads to higher ETH burn rates. This reduces the supply of the coin, which is good for the price.
According to data from Ultrasound.money, the supply of ETH has decreased by over 22,000 ETH in the past month alone.