In a significant development for the Ethereum network, over the course of 1,438 days, more than 4.6 million ether have been burned, resulting in a loss of approximately $13.57 billion in the digital asset's value. Despite this substantial reduction in the supply of ether, the overall supply of the cryptocurrency continues to increase, with the current annual inflation rate standing at 0.801%.

The process of burning ether involves sending the cryptocurrency to an irretrievable address, effectively taking it out of circulation and reducing the total supply. This burning mechanism is intended to help manage the supply of the cryptocurrency and potentially increase its scarcity, which could in turn impact its value and price dynamics.

The continuous burning of ether over the past 1,438 days highlights the ongoing activity and usage of the Ethereum network. The fact that such a significant amount of ether has been removed from circulation underscores the demand and utility of the cryptocurrency within the decentralized ecosystem.

Despite the substantial amount of ether that has been burned, the overall supply of the cryptocurrency continues to grow due to the protocol's design, which includes a mechanism for issuing new ether as block rewards to miners. This has resulted in an annual inflation rate of 0.801%, which is relatively low compared to traditional fiat currencies but is still a factor to consider for investors and users of the Ethereum network.

The burning of ether and the subsequent reduction in its supply could have implications for the value and price of the cryptocurrency in the long term. By reducing the available supply of ether, the burning mechanism may help create a sense of scarcity and potentially drive up demand, which could in turn lead to price appreciation.

Furthermore, the burning of ether also serves as a mechanism to address concerns around inflation and supply growth, as well as to potentially enhance the overall security and sustainability of the Ethereum network.

Overall, the ongoing burning of ether on the Ethereum network represents a significant aspect of the cryptocurrency's ecosystem and highlights the network's continued activity and growth. As the supply of ether continues to be managed through burning and other mechanisms, it will be interesting to observe how these dynamics impact the value and adoption of Ethereum in the future.

Source: https://news.bitcoin.com/ethereum-has-torched-13-5b-in-eth-but-the-supply-keeps-growing/