Ether Turns Deflationary as Amount of ETH Burned Spikes Amid FTX-Induced Market Volatility

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On Wednesday, more than 5,000 ETH was burned, the highest single-day tally since June, according to Etherscan. More than 13,000 ETH have been burned in the past three days alone. The Ethereum Improvement Proposal (EIP)-1559, implemented in August last year, introduced a mechanism to burn a portion of fees paid by users. The EIP is essentially tied the amount of ether burned with the network usage.

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