Over 100,000 ETH ($300 Million) Has Been Burned Since EIP-1559 Went Live
Ethereum network has burned more than 100,000 ETH, worth $300 million in 20 days, since London fork upgrade was implemented, which introduced the EIP-1559 fee burning mechanism.
The ETH is burned during the transaction fee process. To make a transaction, you now pay a base fee, which gets burned, and a priority fee that’s effectively a tip to the miner.
This has had a significant effect to lowering the level of inflation on the Ethereum blockchain. At present, the supply increases by about 5% each year, but this has been effectively reduced by 35% due to the amount being burned in transaction fees.
EIP-1559 has made it easier to estimate how much should be paid in transaction fees to get a transaction processed within the next few blocks. But since we are in the middle of NFT summer — with digital rocks selling for millions of dollars — gas fees can pick up considerably, especially when NFT collections are being minted.
EtherRock 89 purchased for Ξ420 Ether ($1,306,216.80)
Activity on the Ethereum blockchain cointinues high, with 1.2 million in daily transactions, according to The Block’s Data Dashboard. The network continues to move $8.7 billion in volume per day, in total more than $200 billion per month.
At the time of writing Ethereum trades for $3,104 with 1.50% losses on daily chart.
