Regardless of Ethereum’s odd price action over the past few days, the second-largest crypto by market cap has been breaking records behind the scenes. According to Ultrasoundmoney, ETH supply deflation has recently hit a record high as the total ETH supply has dropped by nearly 1% in the past 30 days.

This drop in supply comes at a time when the ETH price has dipped in recent weeks and is currently showing a bullish trend. Over the past three days, ETH has surged by nearly 10% after surviving major losses from last week. 

Deflation Ramps Up As Ethereum Supply Plummets

No doubt, Ethereum’s transition into a proof-of-stake consensus has been a blessing to the network. Not only has it impacted the asset’s supply positively, but it has also been beneficial to the network’s overall growth. 

According to data from Ultrasound.money, the Ethereum network is currently ramping up to be deflationary as the network supply has plummeted by 63,287 ETH at the time of writing since the merge took place last September. 

With Ethereum’s current supply sitting at 120.457 million, the ETH burn rate has moved to 1,219,000 and its supply has also plunged by 0.44% in the past 30 days. This proves that the asset could only continue to reduce its supply over time and eventually become deflationary.

As projected by Ultrasound.money, Ethereum supply would reach 117 million by the year 2025. Issuance rewards for stakers are expected to be about 4% per year, surpassing the burn rate for non-stakers, which is around 1.8% per year. 

Meanwhile, most of the burn in ETH resulting in a plunging supply can be attributed to ETH transfer from major DeFi applications including Uniswap, Tether, and the recently hyped Blur airdrop which triggered a surge in Ethereum network activity.

Overall, a constant record high in deflation and a continual plummet in Ethereum supply could eventually leave ETH price to be valued way higher than it is now, especially as demand continues to increase given the network’s dominance in the DeFi and NFT ecosystem.

ETH’s Continous Rally 

ETH price has rallied by nearly 15% in the last couple of days, and at the time of writing, the surge does not seem to be slowing down anytime soon as the asset has just broken above $1,700 to trade at $1,741. The asset’s price is now up by 8% in the last 24 hours.

In contrast, ETH’s trading volume has also indicated major buying pressure as the asset’s volume surged from $8.6 billion on Monday to $15.9 billion over the past 24 hours. Ethereum’s market cap has surged by more than $20 billion over the same period.

Meanwhile, Ethereum is still down by 64% from its all-time high of $4,891 seen in November 2021 despite its ongoing rally. With the Ethereum Shanghai upgrade drawing close amid a bullish cycle, chances are ETH could see a rebound close to its peak or beyond.

Featured image from Unsplash, Chart from TradingView

Elon Musk has warned that another interest rate hike by the U.S. Federal Reserve could result in deflation hitting the economy.

A major Fed rate hike risks deflation

— Elon Musk (@elonmusk) September 9, 2022

Last year, Musk predicted that the U.S. would enter a recession.

If history is any guide, not many will make it past the next recession

— Elon Musk (@elonmusk) December 30, 2021

On Friday, Federal Reserve Governor Christopher Waller warned that he expects a “significant” interest rate increase later this month.

He mentioned that policymakers should stop guessing the future and instead stick to what the data is saying.

Waller later added that he expects interest rate increases to continue until at least “early next year” as the central bank works to get inflation closer to its 2% goal.

However, he said that the Fed’s “policy path” would depend on the upcoming economic data. He hinted that he would support the 0.75-point move instead of a half-point increase.

Last week, Federal Reserve Chair Jerome Powell said policymakers will remain “strongly committed” to driving prices down to the 2% target “until the job is done.” 

Also Read: Will Tesla EV Prices Rise With Raging Inflation? What Elon Musk Has To Say

Responding to Musk’s tweet on deflation, Dogecoin DOGE/USD co-creator Billy Markus, who goes by the username Shibetoshi Nakamoto, shared a meme showing how Bitcoin BTC/USD maxis feel about potential deflation. 

bitcoin maxis be like pic.twitter.com/fRyMMPsQdB

— Shibetoshi Nakamoto (@BillyM2k) September 9, 2022

Fund manager Cathie Wood has said that the Fed should cease raising interest rates, that the economy is now seeing deflation rather than inflation and is in recession.

“The Fed seems to respond to covid-related supply shocks spanning 15 months the same way that former Fed Chairman Paul Volcker battled inflation that had been brewing and building for 15 years,” the chief executive of Ark Investment Management tweeted.

The Fed is basing monetary policy decisions on lagging indicators: employment and core inflation. Leading inflation indicators like gold and copper are flagging the risk of deflation. Even the oil price has dropped more than 35% from its peak, erasing most of the gain this year. https://t.co/e45KJWrjOZ

— Cathie Wood (@CathieDWood) September 7, 2022

Photo: Created with an image from Steve Jurvetson on Flickr

Uniglo is a new project that has set its sights on becoming the top deflationary cryptocurrency. It has a lot of competition, but its main rivals are Shiba Inu (SHIB), Dogecoin (DOGE), and Bitcoin (BTC). All free of these have their own deflationary mechanisms, but Uniglo’s is arguably the most advanced. Today we will look closely at Uniglo and its unique approaches to burning.

How Does Uniglo’s Deflation Mechanic Work? 

The newly appeared asset-backed Uniglo Protocol includes a revolutionary deflation mechanism. The hyper-deflationary token model made possible by the burning procedure will raise the GLO token’s value and scarcity even more over time. 

The “Ultra-Burn” approach, which will swiftly and cautiously boost value creation for GLO, is a critical component Uniglo has introduced. 2% of each transaction made when entering or exiting Uniglo is continuously burned. Additionally, Uniglo will use a bigger portion of the proceeds from its vaults as a community to repurchase and burn $GLO.

The aforementioned mechanism, according to Uniglo, is the industry standard for managing token burns. This is accomplished by selling assets from Uniglo Vault. Let’s explain it further.

The Uniglo vault will gradually increase in size due to the ongoing addition of the 5 percent Buy and Sell tax to the treasury. As Uniglo expands, it will buy assets and add them to the Uniglo vault to support the Uniglo token’s floor price. To see what Uniglo as a community has, anybody may visit the Vault addresses at any moment. After a sale and profit have been taken out and replenished in the vault, a larger portion of the proceeds will be used to purchase and burn $GLO tokens, creating an immediate and cascading effect.

How Does Glo Compare To Shiba Inu (SHIB), Dogecoin (DOGE), And Bitcoin (BTC)?

To understand the difference between Uniglo and other coins, we first have to understand the methods they are using. For example, Since the opening of the Shiba burn portal, more than 410 trillion SHIB tokens have been burnt, according to a recent release from the Shiba Inu team. However, these coins, whose estimated value is $4 billion, have not produced the anticipated price effects. So the idea behind deflationary models should not always revolve around simple burn mechanisms. 

On the other hand, you have Bitcoin, and even though BTC burning is not common, According to analytics company Chainalysis, some 3.7 million Bitcoins have already been lost for various reasons, such as losing access to one’s private key, passing away, and more. 

The main difference between Uniglo and the others is that it uses a complex system of smart contracts to burn tokens when they are sent automatically. This makes it impossible for anyone to hoard the currency, as their tokens will constantly reduce in value. 

This deflationary mechanic is similar to Shiba Inu’s, but Uniglo goes one step further. It utilizes a 10% tax on each transaction that is sent to a central wallet. This wallet can then be used to pay for things like marketing and development, meaning the project has a constant funding source. 

Uniglo also has a very active community, which is always a good sign. The team constantly interacts with users, and they seem to be very open to feedback. This is a project that definitely has a lot of potentials.

For More About Uniglo:

Join Presale: https://presale.uniglo.io/register

Website: https://uniglo.io

Telegram: https://t.me/GloFoundation

Discord: https://discord.gg/a38KRnjQvW

Twitter: https://twitter.com/GloFoundation1

For publishing articles on our website get in touch with us over email or one of the accounts mentioned below.

Latest posts by Guest Author (see all)

Shiba Inu (CRYPTO: SHIB) broke another record after burning more than a billion tokens in a week with some help from Bigger Entertainment — an independent music publishing group and licensing agency.

What happened: Bigger Entertainment CEO Steven Cooper said on Dec. 22 the company planned to burn 176 million SHIB tokens Dec. 26 at its Christmas party. The firm pooled over 239 million Shiba Inu tokens and announced on Dec 26 that all the tokens were indeed burned.

Oer 1,140 million Shiba Inu tokens were burned last week with 692,937,338 tokens burned in a single transaction on Dec 23.

Last week can easily be considered one of the most notable weeks when it comes to Shiba Inu burning, with a number of tokens burned being 109% higher than the week before, with nearly 545 million burned tokens.

See Also: How to buy Shiba Inu coin?

Ever since Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin burned as many as 410 trillion SHIB in May 2021, about 14.5 billion additional SHIB tokens were burned.

Price Action: As of press time, Shiba Inu is trading at $0.000036, after seeing its price increase by about 13% over the last 24 hours.