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Glassnode analysts concluded that the Ethereum cryptocurrency is likely to be deflationary after The Merge update was activated. The following chart presents $ETH problem under two scenarios: 🟠
Glassnode analysts concluded that the Ethereum cryptocurrency is likely to be deflationary after The Merge update was activated.
The following chart presents $ETH problem under two scenarios:
🟠 $ETH on both PoW + PoS chains, EIP1559 is broadcast by burning (usually inflating).
🔵 $ETH PoS+ simulates a Consolidation published in EIP1559 that will go live in August 2021, showing a high probability of supply deflation. pic.twitter.com/1gHeoDgguw
– glass knot (@glassnode) September 5, 2022
The chart attached to the tweet simulates ETH emission rates for:
Except for August of this year when average gas prices are below 20 GWEI, the simulation condition PoS chain + EIP1559 burn is net deflationary.
That’s with any significant upward wage pressure, $ETH Post-offer Merger can be expected to decline net. pic.twitter.com/6v2NHscANY
– glass knot (@glassnode) September 5, 2022
“Except in August of this year, when the average gas cost was below 20 Gwei, the simulated PoS chain with EIP-1559 is deflationary,” the researchers said.
Experts reminded that as the number of validators increases, the ETH emission rate on the Beacon Chain will increase.
Attention $ETH The regulation in the Beacon Chain increases as more validators enter the pool.
Assuming a successful Merge event, the validator pool is likely to increase as investors’ concerns about technical risk are addressed.
Yield per Validator dropped to ~4.44% today pic.twitter.com/B34NKXYLUp
– glass knot (@glassnode) September 5, 2022
“Assuming the merge was successful. The pool of validators is likely to increase as concerns about technical risks subside, experts said.
According to their observations, the current annual profitability of the validators’ activity is 4.44%.
According to Ultrasound Money, Ethereum’s annual issuance rate after The Merge was estimated at 0.3%.
730.06 ETH is burned every day. 2.6 million Ethereum tokens have been destroyed since the activation of EIP-1559.
Recall that the second largest cryptocurrency’s transition to PoS by capitalization is scheduled for September 15-16.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
