Breaking News for Ethereum Fans: The Deflationary Future of ETH is Here

Attention Ethereum Fans and Crypto Enthusiasts!

Get ready to witness history in the making of Ethereum.

We've seen Ethereum go through a massive transformation with its switch from Proof of Work to Proof of Stake in September 2022. This transition not only reduced Ethereum's annual issuance by a whopping 88% (from 4.61% to 0.52%), as stated on https://ethereum.org/en/upgrades/merge/issuance/ but also brought an exciting new aspect to the network – deflation.

Before the merge, EIP1559 had transformed Ethereum with every transaction now causing a small amount of Ether to be burned, reducing the overall supply of ETH. Despite the bear market of 2022 and its lower gas prices, deflationary effects are already being seen.

And it gets even better! As gas prices increase, so will the deflation of ETH. Currently averaging 20-40 Gwei, gas prices have reached over 100 Gwei during bull markets in the past. Can you imagine the impact on ETH's supply when we reach those levels again and continue to stay there?

Here you can see the history of ETH’s gas prices: https://ycharts.com/indicators/ethereum_average_gas_price

The switch to Proof of Stake has already reduced the total circulation supply of ETH by 2000, compared to if we had stayed on Proof of Work where the supply of ETH would have increased by approximately 2 million ETHs by now.

Ethereum's tokenomics have been revolutionized with this deflationary aspect, unlike anything seen before. This often-overlooked factor is crucial for Ethereum's future and its tokenomics. Let's keep an eye on this deflationary aspect and see where it takes us!

Remember, this is not financial advice.