After the introduction of the Ethereum hard fork “London” on Thursday, almost 2.3 ethers (ETH) per minute are now “burned” on the blockchain network.
The long-awaited London upgrade finally got under way this week, including the Ethereum Improvement Proposal (EIP) 1559, which made fundamental changes to the way the network’s transaction fees work. One of these changes ensures that a small proportion of the fees are automatically destroyed with every transaction.
A total of just under 3,395 ETH has been burned since its introduction, with the average rate according to the Etherchain being 2.36 ETH per minute. This, in turn, is equivalent to $ 6,595 per minute or approximately $ 395,000 per hour.
The count of Ultrasound.money comes to 3,390 ETH that have been burned so far, which means the destruction of a whopping 9.5 million US dollars at the current price of 2,800 US dollars. According to the database, the NFT platform OpenSea is the “top destroyer” among the Ethereum projects with 374 ETH burned or a little more than 1 million US dollars.
In second place came Uniswap v2 with 263 ETH for a value of 740,000 US dollars. Uniswap co-founder Hayden Adams said his project at this rate would wipe out roughly 350,000 ETH or $ 1 billion in a year.
It’s been 2 hours since the launch of EIP-1559
@Uniswap (v2 + v3) is doing its part burning ~ 80 ETH so far
❤️❤️ At this rate, Uniswap alone is burning 350,000 ETH – close to $ 1b worth – per year
Congrats to everyone who made EIP-1559 happen. Huge win for Ethereum
– Hayden Adams (@haydenzadams) August 5, 2021
The DeFi newsletter Bankless tries to draw initial conclusions about the future development of the amount of ether available. However, since the combustion value fluctuates between 25 – 75% of the transaction fees, an exact calculation is difficult.
Accordingly, the analysts can only give a very rough estimate at first:
“We forecast that between 800,000 – 2.4 million ETH will be burned in 2021.”
With the later switch to the Proof-of-Stake (PoS) consensus procedure, the distributed block reward will also be significantly reduced, which, together with the new combustion mechanism, will mean that the available amount of ether in circulation or the amount of ether available will become downright “deflationary “Gets character. Even if demand remained the same, this would inevitably mean a price increase, which is of course good news for investors in the second largest cryptocurrency.