Ethereum remains in the spotlight. It’s been reported that Ethereum’s daily issuance rate fell below the one of Bitcoin for the first time this week, according to a blockchain researcher.
As the online publication, the Daily Hodl notes, Lucas Outumuro, head of research at blockchain intelligence firm IntoTheBlock, said that Ethereum’s (ETH) net inflation fell to an annualized rate of 1.11% compared to Bitcoin’s annualized rate of 1.75% during the middle of this week.
1/ For the first time $ETH‘s daily issuance was lower than $BTC‘s
ETH net inflation: 3574 ETH (1.11% annualized)
BTC net inflation: 900 BTC (1.75% annualized)
A short thread on Ethereum’s recent surge in activity and potential implications of its decreasing inflation 👇 pic.twitter.com/IBT9Vf3MNo
— Lucas Outumuro (@LucasOutumuro) August 27, 2021
He continued and explained the following:
3/ Ether’s decreasing issuance raises questions about how it is valued
Previously closer to “digital oil” ETH’s value moved in tandem with its usage. Now that it’s issuance is provably lower (and potentially deflationary), it is likely to develop a monetary premium like $BTC
— Lucas Outumuro (@LucasOutumuro) August 27, 2021
Also, it’s important to note the fact that Outumuro says that the deflationary pressures on Ethereum will help the second-largest cryptocurrency become a store of value.
“As NFTs and other applications continue to grow on Ethereum, this creates deflationary pressure and reinforces Ether’s monetary premium. Ultimately, this aligns users and holders towards ETH becoming the store of value of the decentralized internet.”
Ethereum has been making headlines a lot these days due to its price surge and more.
Ethereum experiences chain split
Earlier today, we revealed that Ethereum experienced a chain split due to a number of network validators, also called nodes, failing to upgrade their software.
A few days ago, the dev team behind the popular Ethereum software client Geth released an emergency hotfix to a security vulnerability in its code that would have prevented certain users from producing blocks.
