In the space of a year, the price of Ether has been multiplied by 11, to the delight of Ethereum network holders. This morning, the latter has just gratified us with a new price surge by exceeding its previous ATH.
Ethereum to the moon
Ethereum is the second largest cryptocurrency in terms of market capitalization. On October 21, the ETH token hit a new price record by passing $4,361.
Just over a week later, the scenario is repeating itself. Thus, the ETH price once again reached an ATH this Friday, October 29, at around 3am. This one saw its price pass the 4 416$.
ATH as if it was raining
As good news never comes alone, this ATH record has led to others on Ethereum.
Thus, the increase of the ETH price has also positively impacted the DeFi ecosystem. This rise in price has allowed the total value locked into Ethereum’s DeFi ecosystem (called TVL) to register a 5% increase in the last 24 hours, reaching $167 billion.
This marks a new record for DeFi’s TVL on Ethereum. As a result, Ethereum takes a comfortable lead over its competitors. The network is followed by Binance Smart Chain and Solana, with $19 billion and $12 billion in TVL, respectively.
Ethereum deflationary for a day
As you probably know, a change regarding the transaction fee mechanism was recently deployed on Ethereum via EIP 1559.
In practice, it introduces the destruction of a part of the transaction fees. During periods of high usage of the chain, as is currently the case, a large number of transactions are sent on the network and consequently many ETH are destroyed.
This destruction is such that in some cases it happens that the Ethereum network becomes deflationary, i.e. there are more ETH destroyed by the EIP 1559 than created by block rewards.
This was the case in the last 24 hours, where more than 16,000 ETH were destroyed. At the same time, the network issued only 13,400 new ETH. As a result, ETH issuance was reduced by 122% over this period.
This reduction could be even more impressive if all service providers on Ethereum used EIP 1559 transactions. In fact, only 55% of transactions have enjoyed the benefits of EIP 1559 since its release.
