Ethereum is the world’s leading smart-contract platform, powering DeFi, NFTs, and thousands of decentralized applications. Unlike Bitcoin’s fixed supply, Ethereum uses a dynamic supply model.
After the EIP-1559 upgrade, part of every transaction fee is automatically burned, permanently removing ETH from circulation. This means that when the network is busy, more ETH is destroyed than created.
Since Ethereum also switched to Proof-of-Stake, new coin issuance dropped significantly. The combination of lower issuance and fee burning can make ETH deflationary during high activity periods.
This unique economic design is one of the key reasons many investors see long-term value in Ethereum
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