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Some analytics shows that since the Ethereum network’s upgrade focused on increasing mining speed launched, approx 1.9 million ETH has burned.
- Ethereum network is one of the initial and hence prestigious blockchain out of almost every other in crypto space.
- The network, however has been experiencing a lot of issues related to transaction fees, speed and scalability lately
The latest and much-hyped upgrade on the network gained a name as Ethereum London Hard Fork now making advancements this year. An essential part of the London Hard Fork was EIP-1559 took place on August 4, 2021, which has seen an increment in burned coins that reached up to 1.9 million ETH coins.
The main motive of the particular upgrade was to stabilize the gas fees that were way higher and also bring down scalability issues that are long associated with the proof of work network of Ethereum blockchain. That could be the way of strengthening the value of native Ethereum assets, and eventually, it will help to fight the problem of inflation rate faced by miners while claiming rewards.
Ethereum Improvement Protocol was implemented in Aug 2021, and as per analytics recorded, more than 1,965,696 ETH has burned since then. If converted to this, more than 1.9 million Ethereum coins were removed from the circulating supply in USD, they would be worth more than $5 billion as per the current Ethereum price in March 2022.
Since September 15, 2021, approximately 297K Ethereum coins have burned, and per the statistics, the total burned coins number has increased by more than 550% till March 2022. A common consideration is whenever the coins or tokens burn, and it affects the transaction fees.
Similar happened with Ethereum coins because of the increase in demand for nonfungible tokens or NFTs like CryptoPunks and BAYC, which is Bored Ape Yacht Club. These NFTs have traded on Ethereum based NFT marketplace OpenSea and use of decentralized exchanges like Uniswap and SushiSwap.
However, even after burning the staggering amount of Ethereum coins, the set target is yet to be achieved. EIP-1559 has a primary milestone to burn 2,560,000 ETH coins in one year from Aug 2021 to Aug 2022. From that point of view, the total burn till March 2022 is approx 76% of the targeted burn, out of which 24% coin burn is yet to achieve, which is almost 600,000 ETH.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
