Ethereum Reached 3 Million ETH Burnt, Bringing A Total Value Of More Than $9.1 Billion
After 1.5 years of implementing the EIP-1559 coin burning mechanism, the Ethereum network reached a new milestone with 3 million ETH burned.
According to statistics from Ultrasound.money, the Ethereum network in the early hours of March 15 has hit 3 million ETH burnt by EIP-1559. With the current market price of ETH of $1,710, the total quantity of Ether is worth more than $9.1 billion.
EIP-1559 is a special mechanism introduced by Ethereum in August 2021. This mechanism will set a common fee called base fee that applies to all transactions on Ethereum, instead of leaving users free to set fees – something that in the past caused ETH gas fees to always “build up”. During peak times. As a result, EIP-1559 helps to stabilize fees and makes it easier for users to predict gas fee fluctuations, as well as having the option to pay a priority fee for transaction validators to assist transactions. performed better.
The most significant change in EIP-1559 is that it will burn the whole base fee in order to put deflationary pressure on the platform. Since EIP-1559 on November 24, 2021, Ethereum has burnt 1 million ETH, 2 million ETH on March 21, 2022, and 3 million ETH on March 15, 2023. It can be observed that the space between the burns of 1 million ETH is steadily rising, which correlates to a drop in activity on the Ethereum network as the crypto market plunges in 2022.
The circulating quantity of ETH on Ethereum is presently 64,300 coins smaller than when The Merge upgrade was deployed in September 2022, thanks to EIP-1559. When combined with the decline in Proof-of-Stake and EIP-1559 transaction verification rewards, Ether’s annual deflation is 0.108 percent per year.
If Proof-of-Work is still used, Ethereum will have an annual coin inflation rate of up to 3,423%, with about 2 million ETH newly distributed to the market. The activities that consume the most fees since the launch of EIP-1559 to date include transfers of ETH, stablecoin USDT and USDC; trading on DEX Uniswap and MetaMask wallet; and NFT transactions through OpenSea.
Since August 2021, Ethereum applications have consumed the most fees. Around 10:30 a.m. on March 15, 2023, a screenshot of Ultrasound.money was taken. After the popularity and influence of EIP-1559 on Ethereum, other blockchain projects, such as EIP-1559 on Polygon and BEP-95 on BNB Chain, began similar efforts.
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