On August 5th , the EIP-1559 update was activated on the Ethereum network , which was part of a massive london upgrade. One of the key features of the update is a new mechanism for generating transaction fees, which allows you to burn part of ETH with each transaction with coins. Almost four months have passed since the activation of London, and during this period more than a million ETH worth billions of dollars have been burned on the cryptocurrency network. Let's talk about what is happening in more detail.
Note that the number of destroyed ethers as commissions exceeded a million yesterday at 16:35 Moscow time.
A million burned ethers
Since then, the figure has grown to 1.009 million coins destroyed. The average burning rate for all this time is 6.27 ethers per minute.
The number of destroyed ethers
According to analysts from The Block, the cumulative value of the destroyed ETH exceeds the level of $ 3.85 billion. It is this equivalent of ethers that has been removed from circulation forever.
The cost of destroyed ethers
What will happen to the Ethereum course
Since the hard fork, Ethereum miners have mined about 1.5 million ETH. Taking into account the burnt volume of coins, the growth of the cryptocurrency in circulation approached “only” half a million ETH, however, thus, it decreased almost three times. It is assumed that with an increase in the rate of burning in the future, Ethereum will be able to become a deflationary asset, that is, the number of coins in circulation will gradually decrease .
Note that ETH experienced the first deflationary day a month after the update was activated - in early September. Then the number of destroyed ethers exceeded the mark of 10 thousand coins. Thanks to this, the total number of cryptocurrencies in circulation has decreased compared to the previous day.
The number of ETH burned since the upgrade
The emission cuts had a positive effect on the rise in the altcoin price, Decrypt reports . For several months, its cost has grown from 3 to 4.5 thousand dollars .
Ethereum price increase over the past 90 days
It is worth noting that Bitcoin also showed impressive growth from 40 to 58 thousand dollars over the same period.
Bitcoin price increase over the past 90 days
However, there is one caveat - the commissions in the main cryptocurrency network are now below $ 5 , but on average you need to pay at least several tens of dollars for interaction with the ETH network. The London integration, which was supposed to reduce the load on the network and make fees less volatile, did not solve the problem of high payments. Accordingly, ordinary users still have to suffer from too expensive transfers.
We have clarified the current data: now a quick transfer of ETH will cost $ 8.48, while sending ERC20 tokens like USDT, USDC and other similar coins costs more than $ 26. For comparison, on Solana's network, transfers cost a hundredth of a cent. Accordingly, for the same money in this blockchain, you can make thousands of times more transfers.
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